Wednesday, June 2, 2010

Why California will go broke


See the rising cost of government projected out to 2014. The ratio of government to the private sector is rising to 25%, and the yields we pay on general obligation bonds reflect that problem. We can't hold the 25% ratio, and will likely see further economic decline and rapid bankruptcy, likely this year. Los Angeles is already there, bankrupt. The talk among county governments is what kind of work out they can get from the public sector unions, not about paying them off, but about going through bankruptcy to get a workable deal

HT Chris Chantrill

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