This whole liberal economic thing is working so well. A Cali controller says they could run out of cash by March. I think they should tax the rich more, especially every Hollywood personality. In fact, they should fork over 90% of their salaries. Their talent and wealth doesn’t belong to them – it belongs to the occupiers and anyone else who feels entitled, especially those who don’t have their ability and work ethic. It’s called social justice.
California is the 8th largest economy in the world so maybe we should start worrying? Nah, Michael Moore said we have plenty of money.
They need to borrow, shift cash around, and/or delay payments to conjure up $3.3 billion – fast. Borrowing works so well that they decided it’s the way to go. No need to even look at starting for ways to cut.
Controller Chiang is optomistic since the situation is not as dire as it was in 2009. “I believe the upcoming shortfall can be effectively managed without resorting to IOUs, tax refund delays and other drastic measures,” he said. They are going to borrow $865 million from existing accounts – that should fix things. Read more: LA Times
Oh, by the way, the states are going bankrupt also. Get rid of your municipal bonds and head for the gaming parlor to bet on which state will go down first. You’ll find that is a safe haven for your cash (over municipal bonds for sure).