[businessprofessor]

On balance, California voters bet that the feds would rescue them. With conservatives gaining control of the House, a bailout is out of the question. The rats in California are now in a vice. Without a bailout, they will need to make large tax increases. The combination of a dreadful regulatory environment and high taxes will lead to massive flight of businesses and jobs to other states and countries.

Energy subsidies were an indirect bailout to California. With conservatives in charge of the House, I expect the ridiculous subsidies to stop or be substantially reduced. Lots of investment capital in Silicon valley has depended on energy subsidies. Federal money has supported manufacturer of solar panels. These subsidies are now on the endangered list.

I feel sorry for California conservatives. The fox is now fully in charge of the hen house. The blood letting will be painful. Hopefully, the blood letting can be limited to California without fallout to the rest of the country.

[runninglips]

Solar panels will be built in China anyway, they can do it cheaper and they control the market of rare Earth metals necessary to accomplish this.

[stig]

On balance, California voters bet that the feds would rescue them. With conservatives gaining control of the House, a bailout is out of the question.

What should happen is that if California should fail they loose their statehood and become a territory. That would get rid of 2 Senate seats from a leftist state. The same form NY. Then they would have to reapply for statehood. The federal government would then be able to send troops and federal marshals in to clean up the immigration mess.

At least it would be a deterrent to doing what they are going to do which is setup a bankrupt marxist regime inside the United States.