A great in-depth description of why California’s problems are going to get a lot worse. Negative feedback loops galore, in housing, employment, foreclosures, fiscal deterioration, and more.
What the author doesn’t fully include, which makes the problems even worse, are time lags. Since there is a period between the economic deterioration and the accumulation and publication of data showing same, and then a further lag between several months of data and the public and politicians’ recognition of it, and then a further action lag (policy changes, consumer belt-tightening, etc), the chain of time lags will make the downtrend deeper and longer than now believed.
