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To: Behind Liberal Lines

California is about to implode, IMHO.

The ongoing giddy sense of paradise, and raging prosperity in the Golden State for the last decade has been fueled by exploding real estate equity.

The economy isn’t really getting better here. But a lot of people have been given access to a lot of money, which they otherwise would not have. It was almost a decade of unexpected free money.

People who bought homes a decade ago for rational prices, become millionaires almost overnight. All that equity in a rising home market, drove a torrent of home-equity driven spending, which in turn fueled spending and kept generating higher taxes for the state.

That of course kept pressure off the state government (including the current Gov) to control spending, since it was being funded unexpectedly well by increasing revenues.

Well. Guess what...


29 posted on 08/05/2007 1:05:50 PM PDT by Cringing Negativism Network (D is for Defeatism. R is for Reconquista.)
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To: Cringing Negativism Network

Economic “Californianism” is becoming endemic in the Western US - folks willing to relocate just take their equity out of Cal to places like Western WA, Western OR, or Southern ID.

Which is great for the natives, except Californians bring their drooling monogoloid politics with them.

We hate them, until they buy our houses. We move elsewhere.


43 posted on 08/05/2007 3:21:43 PM PDT by IslandJeff (Jeremiah 2:14-22)
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