As Expected California Begs for a Bailout
Posted by Jeff Pruitt - 6/16/09 @ 11:58 pm - Filed Under Uncategorized
As I wrote previously, California is completely broke and staring down the barrel of a $24 billion budget shortfall. Here’s what I thought about the state asking for a bailout:
At some point they are going to have to realize that the size of their government is unsustainable. They must make severe cuts and build their cash reserves back up. You cannot mortgage yourself into prosperity
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Of course that is unless Uncle Sam decides to bail them out which I’m sure is what they’re hoping for. I don’t know about you but I don’t want my tax dollars going to help a bunch of delusional and irresponsible legislators.
Well, it sure didn’t take long did it?
Top state officials have gone hat in hand to the administration, armed with dire warnings of a fast-approaching “fiscal meltdown” caused by a budget shortfall.
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With an economy larger than Canada’s or Brazil’s, the state is too big to fail, California officials urge.
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But federal officials are worried that a bailout of California would set off a cascade of demands from other states.
Here it comes. Another massive bailout for people who certainly don’t deserve it. The federal government should not subsidize California’s largesses. They are in the position they are in because they refuse to deal with reality and they have no concept of money or basic economics. Of course neither did the major banks and we bailed their sorry asses out.
Which is more likely?
- California legislators show they have half-a-brain and balance their budget through appropriate spending cuts
- Uncle Sam bails them out
I hope I’m wrong but if I were a gambling man I know where I’d put my money…
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