Comments on: Will there be a federal bailout for California? http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/ Attempts at a Sustainable Lifestyle... Sat, 21 Nov 2009 16:47:07 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: CashAholic http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/comment-page-1/#comment-3322 CashAholic Mon, 01 Jun 2009 17:30:46 +0000 http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/#comment-3322 Can a state go bankrupt? I have a feeling Californians will find out. As a Californian resident I am taking practical measures by increasing my state tax deductions. Not sure California will refund over paid taxes this year ... Can a state go bankrupt? I have a feeling Californians will find out. As a Californian resident I am taking practical measures by increasing my state tax deductions. Not sure California will refund over paid taxes this year …

]]> By: Gary Anderson http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/comment-page-1/#comment-3316 Gary Anderson Sat, 23 May 2009 04:31:51 +0000 http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/#comment-3316 I believe that California was warned that this was a bubble in 2005 and didn't bother to have a rainy day fund. They are idiots in Sacramento. I believe that California was warned that this was a bubble in 2005 and didn’t bother to have a rainy day fund. They are idiots in Sacramento.

]]> By: Philip Brewer http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/comment-page-1/#comment-3315 Philip Brewer Wed, 20 May 2009 21:41:44 +0000 http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/#comment-3315 Perhaps the rational individual response to situations such as the current one in California is to vote with your feet--i.e. enjoy the great public services available because they run deficits, and then move to another state when they have to cut services and raise taxes to pay the debt. Illinois, the state I live in, will face a similar situation. It has a huge (and underfunded) pension system for state university employees--but making those pension payments is required by the state constitution. Rather sooner than later, they'll have to do something to close the gap. I must admit that I've never really followed my own advice--but I might, if things get bad enough. Similarly, it seems quite possible that lots of people in California will. (Different people, depending on exactly how California closes the budget gap--people with kids if they cut school funding, people with high incomes if the raise income taxes, etc.) Perhaps the rational individual response to situations such as the current one in California is to vote with your feet–i.e. enjoy the great public services available because they run deficits, and then move to another state when they have to cut services and raise taxes to pay the debt.

Illinois, the state I live in, will face a similar situation. It has a huge (and underfunded) pension system for state university employees–but making those pension payments is required by the state constitution. Rather sooner than later, they’ll have to do something to close the gap.

I must admit that I’ve never really followed my own advice–but I might, if things get bad enough. Similarly, it seems quite possible that lots of people in California will. (Different people, depending on exactly how California closes the budget gap–people with kids if they cut school funding, people with high incomes if the raise income taxes, etc.)

]]> By: Erica Douglass http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/comment-page-1/#comment-3314 Erica Douglass Wed, 20 May 2009 20:03:49 +0000 http://baglady.dreamhosters.com/2009/05/20/will-there-be-a-federal-bailout-for-california/#comment-3314 Agreed! You often write what I am thinking. :) Mish from Global Economic Trend Analysis did a California budget: http://globaleconomicanalysis.blogspot.com/2008/01/mishs-california-budget-proposal.html I'm a fan of this, even though special-interest groups will have out their pitchforks. Our 1997 budget fits within the money we make now. As far as I am aware, we all lived pretty well in 1997, so just rolling back the clock is another (easier) solution. -Erica Agreed! You often write what I am thinking. :)

Mish from Global Economic Trend Analysis did a California budget: http://globaleconomicanalysis.blogspot.com/2008/01/mishs-california-budget-proposal.html

I’m a fan of this, even though special-interest groups will have out their pitchforks. Our 1997 budget fits within the money we make now. As far as I am aware, we all lived pretty well in 1997, so just rolling back the clock is another (easier) solution.

-Erica

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