The US state governments are in big fiscal trouble -- in large part due to the greedy public sector unions which have seized control of large parts of state and local government -- and can control the swing of local and state elections.
Gullibility is the principle cause of financial bubbles (via Simoleon Sense)
Small investors may be taking too big a risk in the bond market -- helping to inflate the growing bond bubble.
This Niall Ferguson video explains why the big-spending US Obama regime may be leading the US to the edge of the abyss -- and beyond.
The ebullient enthusiasm in the recent US stock market and commodities markets may be based upon misplaced optimism.
This paints a far less bleak picture of CA's financial situation than I would have imagined. Basically, our debt-to-GDP ratio is low which is all investors care about. That probably explains why we've been able to get away without passing a budget on time for the past 20 years.
ReplyDeleteI did a search though and CA is a net tax consumer in the Union and has the 49th worst business climate, so I'm not really sure what to make of that chart, even without mentioning the demographic melt-down.