[KantianBurke]

wonder how this nation will react when SS, Medicare and the other entitelment programs explode in cost in the not so distant future.

[kellynla]

Merrill Lynch nevered paid us back after running a game on it's clients. And Merrill is back looking for our business again. CA doesn't need to file BK. CA just needs some intelligent and responsible people to come in and cut the budget. There is no shortage of revenue. The morons in Sacramento are just spending more than the state is bringing in. Heck, my 10 year old nephew could solve the budget problem in Sacramento.

[kellynla]

It was reported this am that $500 million could be saved by deferring cost-of-living increases in the state's two biggest welfare programs. So don't let the liberal media snow you on us being broke or there not being enough money to pay the bills. If they have money to give welfare recipients a raise then they can cut the budget and balance the books.

[headsonpikes]

"There's just a lot of negative karma going on out there right now."

LOL!! That's some analysis.

[Reeses]

one of the wealthiest counties in the nation bankrupt, the result of the county treasurer's wrong-way bets on interest rates.

The county treasurer was a flaming Democrat. They liked him because of his high investment returns but little did they know he accomplished that by greatly increasing risk. The lesson is: never ever trust a Democrat with your money.

Even with the penalty, California still paid only 5 percent to borrow money for 30 years.

Not exactly true. Bond buyers do not pay state income tax on the income from these bonds. The state is really borrowing at about 8 percent, and these bonds compete for buyers in the junk bond market.

[janetgreen]

Not one state government idiot has mentioned the ugly fact that Californians are forced to spend billions on every entitlement possible for illegal aliens. Not one word. Like George Bush, they don't want to offend the hispanics.

[janetgreen]

Not one state government idiot has mentioned the ugly fact that Californians are forced to spend billions on every entitlement possible for illegal aliens. Not one word. Like George Bush, they don't want to offend the hispanics, which might scare illegal alien votes away.

Millions of illegal aliens + welfare state = financial disaster.

[PAR35]

Bankruptcy isn't an option, but all they need to do is to "defer" payment on all of the state's outstanding bond obligations, and then re-negotiate terms.