California's golden goose is ill

The Second Tech Bubble Has Burst: Here Come The Mass Layoffs

This is a Zero Hedge report, a good one.  The venture capital system is very volatile, its going to have deep cycles.  It's tech, that means at some point the gang invents the systematic, open source protocol to get all the crap done.  When that happens,  a thousand start ups no longer have, the little proprietary edge  and layoffs at Silicon Valley jump way up.

For example, we had a variety of networking protocols, then suddenly we all jumped on Tcp/Ip, the web.  That was a disruption but then we get web companies.  Now we are adopting a verifiable web language with transaction closure rules. All the various Fintech start ups will adopt the common  model of transaction, likely ethereum. And so it goes. 

What happens next?

• California housing will take a dip, or remain stable in price. 
• 40% of our job growth goes away, and about 20 billion in state taxes.  
• Retail slows a bit.  
• The stock market drips a bit.  Local union fees jump, and so it goes; all the feedback effects..

Who is laying off  nationally? 

Retail, the oil patch, banking, manufacturing, and now tech.  The only thing holding us up are Asian asset buyers, and welcome to them.