California at risk of bankruptcey, Which state is next?

With the current situation in California, I pose a question for those ATS members that live in the U.S,as well as those educated enough to accurately forecast: Which states are next to go down the same road as California? and as such what will the details will likely be? Will it be a lack of taxpayer money? What are your thoughts? Any State employees worried?





below is the link to the thread mentioned above, as well as another.
www.abovetopsecret.com...
www.abovetopsecret.com...






[edit on 30-12-2008 by alyosha1981]

[edit on 30-12-2008 by alyosha1981]

[edit on 30-12-2008 by alyosha1981]

The basic way it works is this:
Say you earn $50,000 per year and have $30,000 in expenditures and $20,000 profit. And you set up a budget annually for yourself of $30,000 to meet expenses. Then one year you have an extra $5,000 expense. Do you call your brother and say "Can I borrow $5,000 I have a deficit this year due to unexpected car repairs. If you don't loan me $5,000 I'll have to file bankruptcy."? Well, the government(s) do but in reality you have that $20,000 profit your accumulating annually and not telling your brother about.

Study the cafr1.com... materials.

How is it that a state managed to go bankrupt at the same time as the economy collapsed. I am admittedly ignorant to how this would work. I would understand if it was a year or two later. After multiple businesses went under and extreme unemployment rates reduce income from taxes. But for it to happen at exactly the same time doesn't seem right to me.

It feels planned.

All of the states on the in the Northeast are broke. CT and MA have been since I was in elementary school. I used to laugh when the news would report a "surplus" until I realized I was the only one laughing. The "surplus" never took into account long term debt. How the hell can I tell somebody I had a 10,000 surplus when I still owe for a car or house?

If you see a state that raises taxes year after year while simultaneously spending more year after year chances are you're looking at a bankrupt state floating on debt.

I'm a town employee and am a little worried. Worried that the morons running the state will allocate finds they dont have to some urban cesspool for addict/vagrant facilities or some train/bus nobody will use and in order to make up for the politicians trying to buy the votes of the stupid living in densely populated areas the burden of my small town will increase in the form of higher property and business taxes to be funneled to the state and the urban cesspools that overspent on "services" and create more dependence by further punishing small businesses and homeowners in rural areas. After all, why should the towns with properly managed budgets not suffer along with the cities led by crack heads and thieves? It's not fair in the view of the new socialist America.

I'm worried that when the stupidity of the masses comes crashing down it wont be allowed to crash completely and will get propped up artificially ala the New Deal or these wholly absurd dollar destroying bailouts.

America must be the only country left where you can behave like a total moron and rise to great political heights only to behave even worse and not only get reelected but receive acclaim. I'm looking at Frank and Dodd for starters.

Originally posted by Karlhungis
How is it that a state managed to go bankrupt at the same time as the economy collapsed. I am admittedly ignorant to how this would work. I would understand if it was a year or two later. After multiple businesses went under and extreme unemployment rates reduce income from taxes. But for it to happen at exactly the same time doesn't seem right to me.

It feels planned.

I suppose the top down view would look something like America as a corporation. View the states as the different sales regions each headed by a sales manager. If your budget is based on Gross Profit of your sales region and your sales are down, then your budget is going to go down. That's when you call the chiefs and VPs of the other departments at corporate (the federal government) and start asking for help and money, such as the marketing department. Which to me, makes California ripe for Obama's 'New New Deal' to build more infrastructure to entice more people and business to go there.

California has some gigantic bubbles that need to pop and they tax the hell out of their residents. The 'consumers' are going to have a hard time spending their. As people get laid off, their 10 percent state income tax goes, as long as their spending on the California corporations which pay state corporate taxes and sales taxes.