Home › Forums › Financial Markets/Economics › States of Crisis for 46 Governments Facing Greek-Style Deficits
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June 26, 2010 at 5:17 PM #17632June 26, 2010 at 6:00 PM #571939ZeitgeistParticipant
Glad you posted this and not me.
June 26, 2010 at 6:00 PM #572037ZeitgeistParticipantGlad you posted this and not me.
June 26, 2010 at 6:00 PM #572948ZeitgeistParticipantGlad you posted this and not me.
June 26, 2010 at 6:00 PM #572656ZeitgeistParticipantGlad you posted this and not me.
June 26, 2010 at 6:00 PM #572549ZeitgeistParticipantGlad you posted this and not me.
June 27, 2010 at 6:26 AM #572764EconProfParticipantIn many ways the dynamics of Ca’s fiscal decline are beginning to resemble the nation’s real estate decline. They both contain elements that feed on each other making the situation worse. These feedback loops fueling the state’s fiscal crisis include a declining economy which reduces revenue: a real estate price decline reducing 1) consumer confidence, 2) consumer spending (no more house ATM), (3)property tax revenues; state and local government spending soon to fall; the flight of besieged businesses to friendlier states and countries, etc.
Also, like Greece, CA faces much higher interest cost on our debt since our state is tied with Illinois for worst credit rating. Investors will increasingly look to how a state handles its finances.
The worst development from the recent weeks’ news is that the economy is not rebounding, which in past cycles always bailed us out. The question now is how much do collapsing state and local budgets affect real estate? We are about to find out.June 27, 2010 at 6:26 AM #573057EconProfParticipantIn many ways the dynamics of Ca’s fiscal decline are beginning to resemble the nation’s real estate decline. They both contain elements that feed on each other making the situation worse. These feedback loops fueling the state’s fiscal crisis include a declining economy which reduces revenue: a real estate price decline reducing 1) consumer confidence, 2) consumer spending (no more house ATM), (3)property tax revenues; state and local government spending soon to fall; the flight of besieged businesses to friendlier states and countries, etc.
Also, like Greece, CA faces much higher interest cost on our debt since our state is tied with Illinois for worst credit rating. Investors will increasingly look to how a state handles its finances.
The worst development from the recent weeks’ news is that the economy is not rebounding, which in past cycles always bailed us out. The question now is how much do collapsing state and local budgets affect real estate? We are about to find out.June 27, 2010 at 6:26 AM #572658EconProfParticipantIn many ways the dynamics of Ca’s fiscal decline are beginning to resemble the nation’s real estate decline. They both contain elements that feed on each other making the situation worse. These feedback loops fueling the state’s fiscal crisis include a declining economy which reduces revenue: a real estate price decline reducing 1) consumer confidence, 2) consumer spending (no more house ATM), (3)property tax revenues; state and local government spending soon to fall; the flight of besieged businesses to friendlier states and countries, etc.
Also, like Greece, CA faces much higher interest cost on our debt since our state is tied with Illinois for worst credit rating. Investors will increasingly look to how a state handles its finances.
The worst development from the recent weeks’ news is that the economy is not rebounding, which in past cycles always bailed us out. The question now is how much do collapsing state and local budgets affect real estate? We are about to find out.June 27, 2010 at 6:26 AM #572050EconProfParticipantIn many ways the dynamics of Ca’s fiscal decline are beginning to resemble the nation’s real estate decline. They both contain elements that feed on each other making the situation worse. These feedback loops fueling the state’s fiscal crisis include a declining economy which reduces revenue: a real estate price decline reducing 1) consumer confidence, 2) consumer spending (no more house ATM), (3)property tax revenues; state and local government spending soon to fall; the flight of besieged businesses to friendlier states and countries, etc.
Also, like Greece, CA faces much higher interest cost on our debt since our state is tied with Illinois for worst credit rating. Investors will increasingly look to how a state handles its finances.
The worst development from the recent weeks’ news is that the economy is not rebounding, which in past cycles always bailed us out. The question now is how much do collapsing state and local budgets affect real estate? We are about to find out.June 27, 2010 at 6:26 AM #572145EconProfParticipantIn many ways the dynamics of Ca’s fiscal decline are beginning to resemble the nation’s real estate decline. They both contain elements that feed on each other making the situation worse. These feedback loops fueling the state’s fiscal crisis include a declining economy which reduces revenue: a real estate price decline reducing 1) consumer confidence, 2) consumer spending (no more house ATM), (3)property tax revenues; state and local government spending soon to fall; the flight of besieged businesses to friendlier states and countries, etc.
Also, like Greece, CA faces much higher interest cost on our debt since our state is tied with Illinois for worst credit rating. Investors will increasingly look to how a state handles its finances.
The worst development from the recent weeks’ news is that the economy is not rebounding, which in past cycles always bailed us out. The question now is how much do collapsing state and local budgets affect real estate? We are about to find out.June 27, 2010 at 12:22 PM #572209Allan from FallbrookParticipantCalifornia’s woes also illustrate the dangers of extremist politics.
We’ve gone from California’s “Golden Age” of the 1960s, when Democratic (Pat Brown) and Republican (Ronald Reagan) governors worked together on education, infrastructure/transportation and innovation to make California business-friendly and dominant in industries ranging from high-technology to aerospace. Our education system was excellent at all levels. Our infrastructure and transportation/road system was designed for efficiency and speed and the business climate was conducive to continued solid growth in diverse markets and industries.
Juxtapose that with the present situation, especially the gridlock in Sacramento, the erosion of nearly all of our competitive advantages, most critically in education, and a business-unfriendly environment that is driving companies to Nevada, Texas and Arizona. The extremists of both parties essentially control just enough respective power to ensure that nothing gets done, nothing gets fixed and a realistic budget never gets passed.
We’ve gone from dominance to a cautionary tale in two generations.
June 27, 2010 at 12:22 PM #572723Allan from FallbrookParticipantCalifornia’s woes also illustrate the dangers of extremist politics.
We’ve gone from California’s “Golden Age” of the 1960s, when Democratic (Pat Brown) and Republican (Ronald Reagan) governors worked together on education, infrastructure/transportation and innovation to make California business-friendly and dominant in industries ranging from high-technology to aerospace. Our education system was excellent at all levels. Our infrastructure and transportation/road system was designed for efficiency and speed and the business climate was conducive to continued solid growth in diverse markets and industries.
Juxtapose that with the present situation, especially the gridlock in Sacramento, the erosion of nearly all of our competitive advantages, most critically in education, and a business-unfriendly environment that is driving companies to Nevada, Texas and Arizona. The extremists of both parties essentially control just enough respective power to ensure that nothing gets done, nothing gets fixed and a realistic budget never gets passed.
We’ve gone from dominance to a cautionary tale in two generations.
June 27, 2010 at 12:22 PM #573119Allan from FallbrookParticipantCalifornia’s woes also illustrate the dangers of extremist politics.
We’ve gone from California’s “Golden Age” of the 1960s, when Democratic (Pat Brown) and Republican (Ronald Reagan) governors worked together on education, infrastructure/transportation and innovation to make California business-friendly and dominant in industries ranging from high-technology to aerospace. Our education system was excellent at all levels. Our infrastructure and transportation/road system was designed for efficiency and speed and the business climate was conducive to continued solid growth in diverse markets and industries.
Juxtapose that with the present situation, especially the gridlock in Sacramento, the erosion of nearly all of our competitive advantages, most critically in education, and a business-unfriendly environment that is driving companies to Nevada, Texas and Arizona. The extremists of both parties essentially control just enough respective power to ensure that nothing gets done, nothing gets fixed and a realistic budget never gets passed.
We’ve gone from dominance to a cautionary tale in two generations.
June 27, 2010 at 12:22 PM #572829Allan from FallbrookParticipantCalifornia’s woes also illustrate the dangers of extremist politics.
We’ve gone from California’s “Golden Age” of the 1960s, when Democratic (Pat Brown) and Republican (Ronald Reagan) governors worked together on education, infrastructure/transportation and innovation to make California business-friendly and dominant in industries ranging from high-technology to aerospace. Our education system was excellent at all levels. Our infrastructure and transportation/road system was designed for efficiency and speed and the business climate was conducive to continued solid growth in diverse markets and industries.
Juxtapose that with the present situation, especially the gridlock in Sacramento, the erosion of nearly all of our competitive advantages, most critically in education, and a business-unfriendly environment that is driving companies to Nevada, Texas and Arizona. The extremists of both parties essentially control just enough respective power to ensure that nothing gets done, nothing gets fixed and a realistic budget never gets passed.
We’ve gone from dominance to a cautionary tale in two generations.
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