*when Bush won (or stole, whatever you believe, I don't care) the 2000 election, the Longshoreman Union in CA decided to go on strike. At that time, California was considered the world's 7th largest economy. The Treasury Secretary (that former alum of Alcoa) said, get over it and told Bush not to do anything (same advice he gave when Argentina collapsed). The economy was losing $4Billion per day. That's right, FOUR BILLION DOLLARS A DAY! California just wanted Bush to have discussions with the Union and the Companies involved. They didn't want a bailout, just a chat over Peet's coffee (whihc is pretty good by the way). After the recession kicks in and before the collapse after 9/11, Bush is forced to do just that.
Fast forward to 2009.
CA has told the WORLD that if the federal government does not come up with loan guarantees by the end of July, the state will be unable to pay it's bills. And it has already been sending out IOU's just to get through today. The OBAMA administration has told them to pound salt, fix your own bloated mess (and boy is their system bloated: firemen get $200,000 pensions is just 1 example). The reason Geithner gives? If we help you then we will have to help all of the states.
Well let me tell you something you ijiots. If the state almost brought down our WHOLE economy in 2000 with a STRIKE, just what do you think will happen now? Does the collapse of Lehman, Bear Stearns and AIG ring a bell?
And don't take m y word for it:
Ailing Calif. economy could prolong US recession
Why does California's deficit matter? Because state's massive economy is key to US recovery
By Juliet Williams, Associated Press Writer
On Monday June 29, 2009,
SACRAMENTO, California (AP) -- California faces a $24 billion budget shortfall, an eye-popping amount that dwarfs many states' entire annual spending plans.
Beyond California's borders, why should anyone care that the home of Google and the Walt Disney Co. might stop paying its bills next week?
Virtually all states are suffering in the recession, some worse than California. But none has the economic horsepower of the world's eighth-largest economy, home to one in eight Americans.
California accounts for 12 percent of the nation's gross domestic product and the largest share of retail sales of any state. It also sends far more in tax revenue to the federal government than it receives -- giving a dollar for every 80 cents it gets back -- which means Californians are keeping social programs afloat across the U.S.
While the deficit only affects the state, California's deepening economic malaise could make it harder for the entire nation's economy to recover.
When the state stumbles, its sheer size -- 38.3 million people -- creates fallout for businesses from Texas to Michigan. read on...
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