[socialism_stinX]

They have to cut spending and stop gambling on a strong economic recovery. If CA doesn’t cut spending more they run a very real risk of running out of cash in the next two years and being unable to borrow at reasonable interest rates. California bonds are starting to turn into a Ponzi scheme where the state is borrowing from new investors and using that money to pay the interest on existing bonds. That can’t continue much longer because eventually investors will see too much risk of taking a haircut on principle repayment at bond maturity.

[Hugin]

The sad truth is if CA fired every single government employee they still couldn't pay all the pensions and entitlements they have committed to. They are only making things worse with taxes, lawsuits and regulation forcing businesses to close down or move out of state. Sooner or later there will be a reckoning.