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WILL YOU BAIL OUT CALIFORNIA?


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Poll: California Bailout

California Bailout

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#31 fib_1618

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Posted 11 February 2010 - 01:20 PM

The least unfair solution to me, is to suspend tax statute of limitations and pursue every tax abuse from the past, to remove all of the new and tax loopholes and all tax grants to business, to reintroduce the progressive income taxes of the 1970s with a max of say 70% on income over 15 million per year, to adjust SS payments to inflation without limit on income assessed and to levy a scaled one time wealth tax on those with assets over 500 million. Yes President Obama, tax the millions earned by star athletes, and maybe bring back income averaging again for people with erratic short-lived careers, since this is still allowed for "corporate persons".

I always find it interesting when people can opine what they believe is "fair" and "unfair" when this is discriminatory in and of itself. Like the progressive tax, this kind of thing promotes nothing but "class warfare", and really doesn't address the real problems that we face as a people whose government is that of a Republic. Why some continue to support failing policies is also something of a curious idiosyncrasy, but that can (and should) be discussed on another forum.

Being in the heart of the beast here in Sacramento, I have witnessed first hand many shenanigans that don't seem to get printed or talked about in the media for one reason or the other. Like everything else political, it's all a matter of what the media wants us to know where public opinion can then be swayed into agreement. Here again, there's no sense in my discussing this topic here in this forum, but let's just say it's far better to do a little digging before pointing any fingers.

As to the topic at hand, the citizens of the United States currently have no power with respect to this poll question. We have and we already do pay for other mistakes made by both public and private venues as the recent bailouts of 2008 can contest to (California was also beneficiary of the bail out). The very fact that our bankruptcy laws do not allow states to file for protection will also put increasing pressure that we all "share the load" by mandate. Those who don't assimilate in this public venture will then have their rights confiscated (something of which we have already seen take place).

Suffice it to say, much of what is happening here can be quickly addressed and the ship righted, but there is a flagrant lack of co-operation right now with the boys and girls under the golden dome in making the tough decisions. It's the same thing nationally as well. It's up to all of us to remind our legislatures that they "constitute" what our opinions are and not of what they feel is in our best interests, and then continue to beat a dead horse because it's easy to do or it still sounds good in theory.

Remain silent and you get what you get.

The new solvency deadline is March 1st...we'll see how they handle it this time around, but I wouldn't hold my breath.

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#32 MaryAM

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Posted 11 February 2010 - 03:19 PM

Fascinating... So far 65% overwhelmingly voted NO. Given the premise that the California Effect could induce financial catastrophe across the U.S., yet most people would rather suffer than bailing out a member of the union.

While I can appreciate the principle of it, I can not rationalize choosing economic depression over the bailout.

Something needs to re-set the economic conditions we have now TARP just delayed the inevitable. Debt cannot be so large that it compounds faster than income and current debt levels cannot be serviced much less retired. I've said it before, trillions of debt has to die and go to money heaven. Those who invested in it are finished if they have all their eggs in one basket. Deflationary depressions sure - wipe out a lot of false inflated values - that in turn wipe out tax revenues, and so on and so on - but a good base building can then begin for future generations - and its simply immoral to leave them the legacy of debt currently on the books. I predict before all is said and done - we will have a new currency. Keep in mind we have had three in the past century, the gold backed dollar, the silver certificate and the federal reserve note.
Mary Anne

#33 OEXCHAOS

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Posted 11 February 2010 - 04:27 PM

Fascinating... So far 65% overwhelmingly voted NO. Given the premise that the California Effect could induce financial catastrophe across the U.S., yet most people would rather suffer than bailing out a member of the union.

While I can appreciate the principle of it, I can not rationalize choosing economic depression over the bailout.


Exactly why do you think that not bailing them out would result in a financial catastrophe? I think quite the opposite.

BTW, the "Union" was and is an over-rated notion. Certainly not worth killing millions for.

Regardless, I simply don't see how rewarding incompetence and statism will result in anything other than more incompetence and more statism.

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#34 TechMan

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Posted 11 February 2010 - 04:43 PM

Something needs to re-set the economic conditions we have now TARP just delayed the inevitable. Debt cannot be so large that it compounds faster than income and current debt levels cannot be serviced much less retired. I've said it before, trillions of debt has to die and go to money heaven. Those who invested in it are finished if they have all their eggs in one basket. Deflationary depressions sure - wipe out a lot of false inflated values - that in turn wipe out tax revenues, and so on and so on - but a good base building can then begin for future generations - and its simply immoral to leave them the legacy of debt currently on the books.
Mary Anne


Well said, Mary Anne.

#35 TechMan

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Posted 11 February 2010 - 04:45 PM

Suffice it to say, much of what is happening here can be quickly addressed and the ship righted, but there is a flagrant lack of co-operation right now with the boys and girls under the golden dome in making the tough decisions. It's the same thing nationally as well. It's up to all of us to remind our legislatures that they "constitute" what our opinions are and not of what they feel is in our best interests, and then continue to beat a dead horse because it's easy to do or it still sounds good in theory.

Remain silent and you get what you get.


Hi Fib,

Thanks for this well thought out essay.

#36 TechMan

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Posted 11 February 2010 - 04:53 PM

Exactly why do you think that not bailing them out would result in a financial catastrophe? I think quite the opposite.


Again, please refer to the poll question that started with this hypothesis that "Some believe the Domino Effect of California default would make Lehman Brothers aftermath look like child's play since California stands alone as the world's 8th largest economy and its GSP equals 13% of the U.S. GDP.'

I personally can come up with quite a few possible scenarios, but, until it really happens, I don't know for sure what will happen and neither do most people. Before anything really happens all we can do is forecasting and hypothesizing.