Posted on 11/24/2010 8:49:00 AM PST by Bamanot
There has been meagre commentary on the economic plight of California, the propensity to keep spending, and the inevitable resort to DC for help. Since others have not opined on the subject, I'd like to get the views of this well-informed forum as to how this might come about.
Will there be hearings?
Will there be an appeal from Jerry Brown? from others?
Will the GOP show tough love?
IMHO CA is guaranteed to collaps. Some say bring it on so we can start over. Unfotunately, there is no guarantee it can sucessfully rebuild.
Typically, when an entity, gov’t or other, gets a bailout, there are strings. Usually the bailer requires the bailee to change their ways. Well, if CA could change their ways, they could probaly squeek by without a bailout.
Trust me, CA will go down the tubes with a bloated gov’t, industry killing policies, and $ billions being spent on illegals. Oh, and yes, the feds (us) will bail them out.
I certainly hope that the GOP will get a spine when it comes to the fiscal irresponsibility of states like California, Illinois and New York. I live in Indiana where the state government has made some rather tough choices regarding spending. Local units of government and schools have been particularly hard hit and are really struggling to provide even the most basic services. Not this is all bad mind you, but it sure as hell p*sses me off to think that as a federal tax payer I’m going to be asked to come to the rescue of spendthrift socialists and union thugs in places like California or Illinois.
So I say let ‘em stew in the mess that they have made. Of course there will be dire warnings about the risk of a state defaulting on their debts and the potential harm it may do to the cost of government borrowing for everyone. Well, let’s just test that hypothesis then.
The GOP House better not. That will be worse than the GM bailout and the GOP will be done as a credible political entity.
If the GOP bails out shameless big union/illegal spenders like CA and NY, then they can just kiss their sorry socialist butts goodbye. Just say NO, NO, NO or we’ll say BYE, BYE, BYE.
Eric Cantor and the House may have no direct say if the Federal Reserve decides to buy California bonds as a means to avert the coming state collapse. If the Fed does this and the House GOP can find that they did, it will be up to Congress to change the bank’s charter. The House GOP knows that a direct bailout from Congress would doom them in ‘12.
California has been reckless and arrogant for decades. The state is so far out of line with normal fiscal behavior that to bail it out would be the outrage of the century.
California must be allowed to fail in order to save the rest of the states. Once California goes states will be shocked into saving their own. It’s going to take something big like this to shock the rest of the country into action.
Someone on an earlier thread was saying that bailout money was already being funneled to California under the guise of some unrelated Federal program. I wish I could remember the details. If anyone does know, I hope they will reply to this post.
One of the big problems with the growth of the Federal Government over the years is that money is taken out of the states by the Federal Govt and then redistributed to support “programs” in other states. Thus, blue states can be helped at the expense of red states.
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