Comments on: California Default Looms

By: lyka

lyka — Thu, 16 Jul 2009 05:37:00 +0000

I agree with you on that..it would become a bad precedent if the government will bail out the state of California and i am sure smaller states will follow too..which means that they become dependent on the bail out thing if something happens again..and don’t bother to think of any solution to their economic problems..

By: dparker

dparker — Wed, 15 Jul 2009 11:42:54 +0000

I can’t imagine that an entire state could go bankrupt- especially when it has a bigger economy than most countries.

By: savvyeyty

savvyeyty — Tue, 14 Jul 2009 07:53:34 +0000

Yeah but how would you react seeing your leader a an actor in a movie? Doesn’t seem like a good thing to me. This would likely be another major reason for further recession in the US and should be given a solution. Not just to revive the economy but also for the sake of the people.

By: Ricardo

Ricardo — Thu, 25 Jun 2009 19:12:45 +0000

I haven’t followed the situation closely, but I also assume that Arnold inherited some very challenging problems relating specifically to California as he was elected into office years ago.

I remember hearing that he worked for less money to keep the third Terminator movie in California, rather than British Columbia. Although that’s probably easier to do if you’re also an executive producer and not just an actor.

It was a great PR move as part of his campaign… There’s no denying that.

By: takatenamano

takatenamano — Thu, 25 Jun 2009 14:03:31 +0000

I didn’t know that California’s estate values are that high. If that is so then many of the people there now must have gone on foreclosure already. Not to mention that some banks these days, where you can also gt financial help, are taking advantage of the situation.

By: admin

admin — Tue, 23 Jun 2009 19:30:49 +0000

The Governator is not popular now that things are falling apart, but I don’t think that anyone else could have done better given the circumstances. If the entire country is failing, its tough to point at California with blame. They just have farther to fall since real estate values there are 5 times higher than many other places. So when you get upside down you may be paying on $ 500,000 in mortgage excess that you will never recover instead of $ 100,000.

By: Ricardo

Ricardo — Tue, 23 Jun 2009 15:16:41 +0000

I also can imagine a “house of cards” effect. I heard a few days ago that there was a very limited amount of cash available for the state to keep going, but I forget specifically how that was defined. I think it had to do with financing public departments, etc. It certainly is serious.

I wonder how much different California’s position could have been if Arnold had done things differently?