[quote=Arraya]Of course it would have an affect. Everything is connected.
The state lays of 30,000 people that is 30,000 w/o jobs defaulting on their loans, losing their home to foreclosure, clogging up banks balance sheets, perpetuating the credit contraction, sucking money out of consumption based economy, leading to more job losses, leading to a larger tax shortfall, etc..
It’s a vicious cycle…[/quote]
Spot on, Arraya.
Regarding Prop 13…I don’t see how it can remain in its current form. They will have to tax rentals and second homes at market rate, at the very least. The protection for primary residences will probably stay in effect, as it should, IMHO.
I’d also bet big money that the pension plans get re-worked. There’s no way around that one, either.
