Right Thinking From The Left Coast
The Government is merely a servant -- merely a temporary servant; it cannot be its prerogative to determine what is right and what is wrong, and decide who is a patriot and who isn't. Its function is to obey orders, not originate them. - Mark Twain

California Hopes for Some Change
by

Unfortunately, the physical landscape of California is not the only thing going up in flames right now.  First, one of Canada’s trading exchanges sent out this delightful notice: (via Zerohedge)

Please be advised that there has been an unforeseen delay in renewing CDCC’s annual application with the State of California.

Due to this delay, CDCC options may not at this time and until further notice be sold or offered for sale in the state of California and to California residents until the annual application process is completed.

I’m no financial expert, but I’m pretty sure that’s trader-ese for “You’re broke, chumps--don’t call us, we’ll call you!”

And just to add injury to insult, the state needs a loan to pay their IOUs:

California State Treasurer Bill Lockyer announced that the banking giant is lending the state $1.5 billion to help it pay off IOUs.

The terms are very favorable to California, as the loan carries a 3 percent annual interest rate, lower than the 3.75 percent rate the state is paying on the IOUs. Also, Chase is not charging any fees.

How magnanimous of them!  But that’s not the best part:

The JP Morgan Chase loan matures on October 5, but Treasurer spokesman Tom Dresslar tells me the state hopes to pay it back before then. The Treasurer will begin selling short term revenue notes into the market, possibly by mid-September, and will use some of that money to repay the bank.

Get that?  One of Canada’s largest traders has “delayed” doing business with California or its residents (no doubt one of many to come), and now the state needs a loan from one of Bernanke’s bank brothel madams to cover the financial obligations that it couldn’t cover this summer.  A loan that it hopes to pay back.

This is what it’s like to watch a state slowly circle the drain financially. 

Posted by on 09/01/09 at 08:51 PM (Discuss this in the forums)

Comments


Posted by on 09/02/09 at 08:07 AM from United States

Begging money from foreign sources to fill the massive gaps in your budget, that you probably won’t pay off; this is the sort of thing you would expect from a third world nation. 

Is there any way to force a state to secede from the union if it refuses to leave on it’s own?

Posted by Miguelito on 09/02/09 at 07:01 PM from United States

It still amazes me how people here just keep voting the same morons back into office. 

Of course, those same people blamed all the time it took to pass the budget purely on those “stupid Republikkkans” that only block things and never compromise.  Whatever.

Posted by on 09/02/09 at 09:24 PM from Germany

It still amazes me how people here just keep voting the same morons back into office. 
Of course, those same people blamed all the time it took to pass the budget purely on those “stupid Republikkkans” that only block things and never compromise.  Whatever.

To be somewhat fair, a budget in Cali needs a 2/3rds majority to pass, but that is beside the point, in my opinion.  You’ve got a state with some of the highest taxes in the nation, with some of the highest real estate prices, with one of the highest costs of living in the country, that is bleeding residents (and thus, tax revenue) like a grizzly bear attack victim.  These high costs can be pulled off when you have a population that is working, but Cali’s unemployment is in the double digits.  That is a recipe for disaster in an economic downturn, particularly a downturn that is credit-driven like this one.

I’ve seen more California license plates than I can shake a stick at the last 6 months or so here in New Mexico, and its the ultimate fallout from how the state has been run since that dorkwad “Moonbeam” Brown was in charge.  The irony is that despite its reputation, outside of the Bay Area, LA county, and the Berkeley/Marin County area, the state’s actually more conservative than most might expect.  But conservatives aren’t the ones running things in the Golden State and haven’t been for some time.

Bottom line is that California is hurting, and hurting bad, and there is NO light at the end of the tunnel for them right now with the clowns currently running the state (and yes, that includes the commie fucks in the SEIU).

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