Markets down almost 3 points, Treasury bonds dump almost 20 Bp. Google missed on earnings. B of A has been giving recession warnings. GDPNow is closing at .4 point growth. And the Fed unprepared.
Public pensions in California will severely restrict hiring. Worse, they are being hit with at least 5 points of COLA in 2023. State capital gains taxes ill be missing.
Bernanke's lesson: We cannot bailout CA from the Central Bank orfice. Most of those bonds on the sheet are failed investments in CA. The Fed will have to declare losses on that portfolio or else ingest another 8 trillion in extend and pretend.
California has no politician with enough brains to explain this to us all out here. Our econ professors have a severe conflict of interest. Repubs out here are mostly hiding from Trump except a clueless McCarthy.
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