Doo-Doo Economics

[dcollon]

Here's the latest from Bill Gross

 

http://tinyurl.com/ya96cbf

[cheapguy]

good article and fully agree on the california's budgetary screwup..

 

the state is in deep, deep mess.

 

lot of gimmicks to cover the budgetary deficit, but no real solutions..

[beerbaron]

I was wondering the exact same thing as this article about two weeks ago. I wanted to look further into it's debt/leadership problem and see if that could not be the next trigger of a major blow.

 

I believe the bond market will tell us when things get ugly, anybody has a California bond fund to suggest keeping an eye on?

 

I also wanted to look trough their whole book and see how bad it is but it is a VERY tedious task. Governments tend to move asset one way or another to hide deficits, you know it's there but you can't keep track of the whole thing. Anybody had found someone that compiled the whole thing?

 

From my point of view California is bound to have a major crisis. I really don't see how they can get out of that "vote for everything" policy. This is Democracy at it's worst and there is very little political will to address the lack of common sense. It could be 2 years or 20 years, I don't know, and I'm not into the business of predicting this kind of things but I will surely keep an eye on it.

 

BeerBaron