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Third California City Files For Bankruptcy


Parsad
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I agree with you Bookie.  The human tendencies will have trustees, administrators, etc.. asking if they can do it why can't we.

 

It's bound to start showing up in other states.  Illinois, Michigan, etc...  The question is, what will the states do, if they can do anything.

 

 

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I agree with you Bookie.  The human tendencies will have trustees, administrators, etc.. asking if they can do it why can't we.

 

It's bound to start showing up in other states.  Illinois, Michigan, etc...  The question is, what will the states do, if they can do anything.

 

States generally have the constitutional authority to grant a city charter and to take a city's charter away, but this is rarely done.  In the 20th century, one state I used to live in disincorporated two bankrupt counties in the 1930's and combined then with a solvent adjoining county that could pay their bills.  Later, in the 60's, the state disincorporated a town that tolerated clip joints that preyed on soldiers from a nearby military base after their corrupt politicians and crooks threatened the lives of the family of the local newspaper publisher who had exposed their crimes.

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  • 3 months later...

How does the election change the forecasts for California's demise?  The liberals now have a supermajority, state income taxes were raised on the rich, sales tax was increased, etc...

 

Gridlock is over in Sacramento

 

Well, here's one opinion on the subject:

 

http://globaleconomicanalysis.blogspot.com/2012/11/prepare-for-demise-of-california.html

 

I actually don't disagree with the direction of results he expects from this, just the severity.

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How does the election change the forecasts for California's demise?  The liberals now have a supermajority, state income taxes were raised on the rich, sales tax was increased, etc...

 

Gridlock is over in Sacramento

 

Well, here's one opinion on the subject:

 

http://globaleconomicanalysis.blogspot.com/2012/11/prepare-for-demise-of-california.html

 

I actually don't disagree with the direction of results he expects from this, just the severity.

 

 

I'm quietly hoping that some of the rich people in Montecito will pack up and leave, so I can buy a house here at a discount.  This place is crawling with Republicans.

 

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This will be an interesting experiment but if history is a guide more upper-middle class folks will leave California with a higher tax burden on the remaining folks.  These tax increases effect the rich in only a small way.  It is the middle upper that bear the burden of these increases.  What I find interesting is all of these Progressive taxes don't go after the rich but the class just beneth them.  In essence, the rich have flat tax.  If they were truly progressive, they would tax those folks with mutlimillion dollars of income in the 50 to 60% range or higher.  The only reason California can extract such high taxes is due to Silicon Valley and Hollywood and the networking effect of historic wealth created there.  We will find out how much in taxes in takes to have the golden goose wadle to a different state.

 

Packer

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When it is a lot of small cities, villages, etc in the same state - it is easier to just let them degenerate. They either reinvent themselves with new industry, or become ghost towns. Elliot Lake, Ontario a prime example.

 

When the city is 'too big to fail' degeneration is just slower - & the ghetto expands to take in the entire city. The major income source is aid payments, people stay because that is all they can afford, & there is multi-generational dependency. Still 'rich' pockets within the city, but it is siege living. ie: New Orleans.

 

Not much different when a state fails - the remaining states just prop it up so to some minimum standard of living. Newfoundland, & Nunavat, Canada are examples.

 

There is nothing to prevent a comeback, but it is those who are dependent that pay the price. Often entire generations of people. 

 

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