When I look at this from someone who never took economics,
California is kind of like the worst of Greece and the worst of Spain and some of Japan put together.
Texas is like Germany (sort of).
With huge public debt (cities dropping left and right, state not much better). And 1/3 of all mortgage owners about 100K underwater on average (and yes most will not be walking away so forget it).
California desperately needs to monetize their Public and private debt, has a growing older population transitioning to fixed income and does not want inflation (Texas probably does not want to either)
what to do!! what to do!! .
I figure one day Ben will just lose it, sand up and say.
“Look we need to inflate out way out of this mess, were going to just print money until were blue in the face, get over it”
And from a over simplified point of view I am sure, “the Euro needs to die”, maybe just keep a free trade zone.
