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“Meredith Whitney’s new target: The states”

Repent! The end is near!

(But first, let’s pass statewide cap-and-trade, or add another cigarette tax. We have our priorities, you see…)

(h/t Terry H)

18 Replies to ““Meredith Whitney’s new target: The states””

  1. mojo says:

    Don’t bother me, I have a slash pile to burn.

  2. Mike LaRoche says:

    Ant-covered Jesus artists hardest hit.

  3. Darleen says:

    Top-to-bottom, CA is Democrat controlled. We didn’t elect a Christie to Sacramento to make the hard decisions and stand up to the public unions, we re-elected a warmed-over hippie who hates cars, single family homes and business and actually is responsible for creating CA public employee unions.

    and, if you can believe it, this idiot who is currently CA’s Attorney General, was mayor of Oakland, was a two-term Gov of CA — is SHOCKED! SHOCKED, I tell you, to find out that we are bankrupt.

  4. McGehee says:

    Well Darleen, he’s a member of the party that pushed huge state tax hikes during a recession twenty years ago because businesses would never leave the “economic paradise.”

    Every time they blink, they’re astonished to find there’s a world going on around them.

  5. Ernst Schreiber says:

    The voters get what they want, and ––inevitably–– what they deserve.

  6. Squid says:

    There’s economic theory, and then there’s economic behavior. ‘Twould seem that some really need to figure out that when the one doesn’t follow from the other, it’s more sensible to change the former than to try changing the latter.

    Of course, this would require accepting that there really is an objective reality that conforms to certain rules, so I’d wager that this little problem will continue to elude our Smartest and Wisest.

  7. BuddyPC says:

    Meredith Whitney, the superstar analyst who famously forecast disaster for America’s big banks before the credit crisis struck, is now warning about another looming threat: The wreckage from over-stretched state budgets.

    File under: No Shit; sub-section, what-jungle-where decades-long safari?

  8. Mike LaRoche says:

    Ant-covered Jesus artists hardest hit!

  9. BJTex says:

    California is so completely financially screwed that I’ve talked to a half a dozen business owners working on their get out of state card.

    The only question will be what California’s big Dem politicos bring to the forefront as their desperate “non-Dem” reasons for California’s complete financial crushing.

    Hmmmm …. RONALD REAGAN!!!!

  10. happyfeet says:

    They say the billions of dollars the state collects in the system could help fund clean air programs and help offset any increases in utility rates. Details of the uses of these new funds is still uncertain.

    aren’t they darling?

  11. Roddy Boyd says:

    Shawn Tully,
    Funny guy, a Classic. He’s right on this, which is to say, Whitney is right. Whomever is in office in ’13 is in trouble. I dont think Ca. makes it out of ’12 without DC assistance. They caught a huge break with Brown in Sacremento since he is certain to approach the current administration and get a favorable outcome. To be fair, outside of Palin, no GOP’er is likely to take away the keys to the playhouse.

    It’s weird….a couple of the people I’ve worked with, sat next to and such over the years have come in for it on the site recently…Robert George, Fipp Avalon …..The people are cool and full of memories, the positions they take….well, Im used to being the outlier in the world I come from.

  12. mojo says:

    Mind you, Mr. Businessman, that when you do bolt, leave not a wrack behind. Not so much as a “transitions office”, or California will tax your ass. “Waters Edge” is alive and well.

  13. mongo78 says:

    With Republicans nominally in charge in the House next year, it’s difficult to see how they are going to justify a bailout for a state like California, where all of the statewide offices are held by Democrats. Less true for Illinois and New York, but still. I wouldn’t want to be a congressman going back to, say, North Dakota, and having to explain why their hard-earned money is getting funneled to a bunch of West Coast douchebags.

    I think we’ll try and get out within the next two years. I don’t want to stick around for the final act.

  14. Squid says:

    Does anyone really see Texas remaining in the Union if they’re going to be on the hook for California? If the Golden State Bailout goes through, I may move down there and start the Fuck You party just on principle.

  15. McGehee says:

    I am so encouraging my brother to move to Texas if/when his present job disappears down the Brown Hole.

  16. mongo78 says:

    Also, Mish has been beating this drum for years.

  17. Roddy Boyd says:

    Mongo, McGehee,

    I think you guys understate the case.
    Still, one of the themes I’ve been harping on is the incoming Frosh Hill class is going to find running for office different than being in office. Cutting programs and mobilizing against spending is easy….from a distance. A whole lot of rhetoric aside, when it comes to Ca., one of the world’s 10 largest economies, coming to the brink of default, might prove less easy than they imagine.

    Same for cutting this bill or that bill. A whole lot of red state, newly energized sorts are talking a good game. When they control the mammoth purse strings, and they look at their poor districts that have little in the way of organic economy, it might prove mighty tempting to realign some infrastructure their way.

    Especially since voters who need work take a really, really dim view of ideals two terms on.

  18. McGehee says:

    Especially since voters who need work take a really, really dim view of ideals two terms on.

    sounds like term limits is a win-win.

    BTW, my brother’s job is in the private sector; it will go away when Brown fails to do what needs to be done (either because he won’t, or because the Legislature won’t let him).

    And that’s even with a bailout.

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