[bubba99]

I think it is already a given that California is/will be bankrupt.

Numbers from the cal budget summary

http://www.ebudget.ca.gov/pdf/BudgetSummary/SummaryCharts.pdf

The “budget” they put together is a joke. If they cut everything but education, prisons, welfare, and medi-cal – they still could not balance the budget.

Health and human Services 31.1 billion
Corrections 10.3 billion
K-12 education 41.0 billion
Higher Education 12.0 billion

Total of above 94.4 billion
Total state rev 90.0 billion

This excludes congress, DOT, Highway Patrol, the Courts, EPA et. al.

For the 2008-2009 year, California expects to spend 104 billion with 90 billion in income – -14 billion.

For the 2009-2010 year, California expects to spend 111 billion with 86 billion in income and a deficit of 14 billion from the prior year.

All tolled a 41 billion deficit. That’s 41 billion deficit on total revenue of 86 billion.

Sooner or later, the state will officially be bankrupt.

[bubba99]

I think it is already a given that California is/will be bankrupt.

Numbers from the cal budget summary

http://www.ebudget.ca.gov/pdf/BudgetSummary/SummaryCharts.pdf

The “budget” they put together is a joke. If they cut everything but education, prisons, welfare, and medi-cal – they still could not balance the budget.

Health and human Services 31.1 billion
Corrections 10.3 billion
K-12 education 41.0 billion
Higher Education 12.0 billion

Total of above 94.4 billion
Total state rev 90.0 billion

This excludes congress, DOT, Highway Patrol, the Courts, EPA et. al.

For the 2008-2009 year, California expects to spend 104 billion with 90 billion in income – -14 billion.

For the 2009-2010 year, California expects to spend 111 billion with 86 billion in income and a deficit of 14 billion from the prior year.

All tolled a 41 billion deficit. That’s 41 billion deficit on total revenue of 86 billion.

Sooner or later, the state will officially be bankrupt.

[bubba99]

I think it is already a given that California is/will be bankrupt.

Numbers from the cal budget summary

http://www.ebudget.ca.gov/pdf/BudgetSummary/SummaryCharts.pdf

The “budget” they put together is a joke. If they cut everything but education, prisons, welfare, and medi-cal – they still could not balance the budget.

Health and human Services 31.1 billion
Corrections 10.3 billion
K-12 education 41.0 billion
Higher Education 12.0 billion

Total of above 94.4 billion
Total state rev 90.0 billion

This excludes congress, DOT, Highway Patrol, the Courts, EPA et. al.

For the 2008-2009 year, California expects to spend 104 billion with 90 billion in income – -14 billion.

For the 2009-2010 year, California expects to spend 111 billion with 86 billion in income and a deficit of 14 billion from the prior year.

All tolled a 41 billion deficit. That’s 41 billion deficit on total revenue of 86 billion.

Sooner or later, the state will officially be bankrupt.

[bubba99]

Government spending has me re-thinking all of my investment horizons. There is an unprecedented amount of new “Govt” money in the pipeline, and I think this might offset the serious downtrends of unemployment in the short term.

With the end of collaterization, M3 money took a dive, but now the M1 money supply is beginning to take up the slack. The creation of dollars from thin air is replacing the “crap credit from thin air” that fueled the boom into 2006. It is every bit as unsustainable as CMO’s, but in the short run it could re-inflate the economic balloon for a few more years – or at least slow down the “pop”.

Having just gotten hammered on taxes, it is taking some discipline not to run out and buy a tax deductible home. And even more tempting is long term capital gains income on stocks replacing the higher short term “trader” rates. With the new government dollars, and the now unparalleled tax benefits, the market may continue to grow inspire of rising unemployment.

The new government debt may just kick the problem down the road until 2012 – or it could blow up tomorrow. Either way I am staying clear of short positions until . . .

[bubba99]

Government spending has me re-thinking all of my investment horizons. There is an unprecedented amount of new “Govt” money in the pipeline, and I think this might offset the serious downtrends of unemployment in the short term.

With the end of collaterization, M3 money took a dive, but now the M1 money supply is beginning to take up the slack. The creation of dollars from thin air is replacing the “crap credit from thin air” that fueled the boom into 2006. It is every bit as unsustainable as CMO’s, but in the short run it could re-inflate the economic balloon for a few more years – or at least slow down the “pop”.

Having just gotten hammered on taxes, it is taking some discipline not to run out and buy a tax deductible home. And even more tempting is long term capital gains income on stocks replacing the higher short term “trader” rates. With the new government dollars, and the now unparalleled tax benefits, the market may continue to grow inspire of rising unemployment.

The new government debt may just kick the problem down the road until 2012 – or it could blow up tomorrow. Either way I am staying clear of short positions until . . .

[bubba99]

Government spending has me re-thinking all of my investment horizons. There is an unprecedented amount of new “Govt” money in the pipeline, and I think this might offset the serious downtrends of unemployment in the short term.

With the end of collaterization, M3 money took a dive, but now the M1 money supply is beginning to take up the slack. The creation of dollars from thin air is replacing the “crap credit from thin air” that fueled the boom into 2006. It is every bit as unsustainable as CMO’s, but in the short run it could re-inflate the economic balloon for a few more years – or at least slow down the “pop”.

Having just gotten hammered on taxes, it is taking some discipline not to run out and buy a tax deductible home. And even more tempting is long term capital gains income on stocks replacing the higher short term “trader” rates. With the new government dollars, and the now unparalleled tax benefits, the market may continue to grow inspire of rising unemployment.

The new government debt may just kick the problem down the road until 2012 – or it could blow up tomorrow. Either way I am staying clear of short positions until . . .

[bubba99]

Government spending has me re-thinking all of my investment horizons. There is an unprecedented amount of new “Govt” money in the pipeline, and I think this might offset the serious downtrends of unemployment in the short term.

With the end of collaterization, M3 money took a dive, but now the M1 money supply is beginning to take up the slack. The creation of dollars from thin air is replacing the “crap credit from thin air” that fueled the boom into 2006. It is every bit as unsustainable as CMO’s, but in the short run it could re-inflate the economic balloon for a few more years – or at least slow down the “pop”.

Having just gotten hammered on taxes, it is taking some discipline not to run out and buy a tax deductible home. And even more tempting is long term capital gains income on stocks replacing the higher short term “trader” rates. With the new government dollars, and the now unparalleled tax benefits, the market may continue to grow inspire of rising unemployment.

The new government debt may just kick the problem down the road until 2012 – or it could blow up tomorrow. Either way I am staying clear of short positions until . . .

[bubba99]

Government spending has me re-thinking all of my investment horizons. There is an unprecedented amount of new “Govt” money in the pipeline, and I think this might offset the serious downtrends of unemployment in the short term.

With the end of collaterization, M3 money took a dive, but now the M1 money supply is beginning to take up the slack. The creation of dollars from thin air is replacing the “crap credit from thin air” that fueled the boom into 2006. It is every bit as unsustainable as CMO’s, but in the short run it could re-inflate the economic balloon for a few more years – or at least slow down the “pop”.

Having just gotten hammered on taxes, it is taking some discipline not to run out and buy a tax deductible home. And even more tempting is long term capital gains income on stocks replacing the higher short term “trader” rates. With the new government dollars, and the now unparalleled tax benefits, the market may continue to grow inspire of rising unemployment.

The new government debt may just kick the problem down the road until 2012 – or it could blow up tomorrow. Either way I am staying clear of short positions until . . .

[bubba99]

Looking around Berkeley, I think the inflated housing is being paid for by you and me. The University is a huge influx of money both in terms of bloated UCB salaries, and students who are using loans to pay for an overpriced “free public education”.

I am guessing the party won’t be over until the state puts a cap on new 300K admin jobs at the University.

[bubba99]

Looking around Berkeley, I think the inflated housing is being paid for by you and me. The University is a huge influx of money both in terms of bloated UCB salaries, and students who are using loans to pay for an overpriced “free public education”.

I am guessing the party won’t be over until the state puts a cap on new 300K admin jobs at the University.

[bubba99]

Looking around Berkeley, I think the inflated housing is being paid for by you and me. The University is a huge influx of money both in terms of bloated UCB salaries, and students who are using loans to pay for an overpriced “free public education”.

I am guessing the party won’t be over until the state puts a cap on new 300K admin jobs at the University.

[bubba99]

Looking around Berkeley, I think the inflated housing is being paid for by you and me. The University is a huge influx of money both in terms of bloated UCB salaries, and students who are using loans to pay for an overpriced “free public education”.

I am guessing the party won’t be over until the state puts a cap on new 300K admin jobs at the University.

[bubba99]

Looking around Berkeley, I think the inflated housing is being paid for by you and me. The University is a huge influx of money both in terms of bloated UCB salaries, and students who are using loans to pay for an overpriced “free public education”.

I am guessing the party won’t be over until the state puts a cap on new 300K admin jobs at the University.

[bubba99]

If you look at the posted chart (second post) from Shadowstats.com you will see three measures of un-employment. The headline number U(1), the number including discouraged workers U(6), and the most likely real number – calculated in the same manner it was before the Clinton era downward changes.

The plight of a discouraged worker can be viewed in a number of ways – just too lazy to look, or having sent out thousands of resumes for many months, just sees the futility in continuing to look.

Any way you cut it, I cannot believe that the labor force is shrinking faster than jobs are being lost.

[bubba99]

If you look at the posted chart (second post) from Shadowstats.com you will see three measures of un-employment. The headline number U(1), the number including discouraged workers U(6), and the most likely real number – calculated in the same manner it was before the Clinton era downward changes.

The plight of a discouraged worker can be viewed in a number of ways – just too lazy to look, or having sent out thousands of resumes for many months, just sees the futility in continuing to look.

Any way you cut it, I cannot believe that the labor force is shrinking faster than jobs are being lost.

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