Comments on: Will California Get the Next Bailout? http://themoderatevoice.com/23198/will-california-get-the-next-bailout/ An Internet hub with domestic and international news, analysis, original reporting, and popular features from the left, center, indies, centrists, moderates, and right Wed, 15 Feb 2012 13:18:52 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: daveblue http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-160973 daveblue Mon, 27 Oct 2008 22:03:33 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-160973 Any action the government takes to help ease the financial crisis will only treat the symptoms, not the cause. Until we treat the cause we will see one crisis after another. <br> This crisis is a lesson showing us how interconnected all the worlds finances are. Our greed, self interest and egoistic attitudes are the cause of the crisis and the only cure is to change these internal attitudes. <br> Any action the government takes to help ease the financial crisis will only treat the symptoms, not the cause. Until we treat the cause we will see one crisis after another. <br> This crisis is a lesson showing us how interconnected all the worlds finances are. Our greed, self interest and egoistic attitudes are the cause of the crisis and the only cure is to change these internal attitudes. <br> Michael Laitman expands on the problem and offers solutions in this blog item :-<br><a href="http://www.laitman.com/2008/10/the-financial-crisis-an-analysis">http://www.laitman.com/2008/10/the-financial-cr...</a> Any action the government takes to help ease the financial crisis will only treat the symptoms, not the cause. Until we treat the cause we will see one crisis after another.
This crisis is a lesson showing us how interconnected all the worlds finances are. Our greed, self interest and egoistic attitudes are the cause of the crisis and the only cure is to change these internal attitudes.
Any action the government takes to help ease the financial crisis will only treat the symptoms, not the cause. Until we treat the cause we will see one crisis after another.
This crisis is a lesson showing us how interconnected all the worlds finances are. Our greed, self interest and egoistic attitudes are the cause of the crisis and the only cure is to change these internal attitudes.
Michael Laitman expands on the problem and offers solutions in this blog item :-
http://www.laitman.com/2008/10/the-financial-cr…

]]> By: DLS http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156969 DLS Mon, 06 Oct 2008 02:42:30 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156969 <a href="http://www.time.com/time/magazine/article/0%2C9171%2C947546%2C00.html">http://www.time.com/time/magazine/article/0,917...</a><br><br><a href="http://www.nytimes.com/2006/12/31/nyregion/31default.html">http://www.nytimes.com/2006/12/31/nyregion/31de...</a><br><br><a href="http://www.gothamgazette.com/article/issueoftheweek/20051010/200/1612">http://www.gothamgazette.com/article/issueofthe...</a><br><br><a href="http://www.manhattan-institute.org/pdf/PI158McMahonSiegel.pdf">www.manhattan-institute.org/pdf/PI158McMahonSie...</a> http://www.time.com/time/magazine/article/0,917…

http://www.nytimes.com/2006/12/31/nyregion/31de…

http://www.gothamgazette.com/article/issueofthe…

http://www.manhattan-institute.org/pdf/PI158McMahonSie...

]]> By: DLS http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156947 DLS Mon, 06 Oct 2008 00:25:15 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156947 "California can't get a loan through commercial channels"<br><br>and so it is going to Washington for a *BAILOUT*. Truth told. “California can't get a loan through commercial channels”

and so it is going to Washington for a *BAILOUT*. Truth told.

]]> By: DLS http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156946 DLS Mon, 06 Oct 2008 00:23:47 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156946 Marlowecan: In the 1970s, New York City, at the forefront of liberalism, bankrupted itself. The city government and many liberals _expected_ US taxpayers to bail out that city, to "rescue" it in today's stupid euphemistic media parlance and prop it up and keep it and its idiotic policies alive and "progressing." California, with its heavy Democratic control of the state legislature for ages, and Massachusetts Lite politics as I, a native of that state, have called it, has now managed to fail fiscally as well as fail to correct its misbehavior. Yet we'll see clamoring to save it by those to whom moral hazard comes naturally (for no good reasons, to say the least). Oh, and if the people in California's government get desperate, they can always say that they and their huge electoral vote contingent will be angry and vote Democratic this year if they are snubbed by the Bush administration (while the irony of the un-learning that voting heavily Democratic represents will go unnoticed and unannounced). Marlowecan: In the 1970s, New York City, at the forefront of liberalism, bankrupted itself. The city government and many liberals _expected_ US taxpayers to bail out that city, to “rescue” it in today's stupid euphemistic media parlance and prop it up and keep it and its idiotic policies alive and “progressing.” California, with its heavy Democratic control of the state legislature for ages, and Massachusetts Lite politics as I, a native of that state, have called it, has now managed to fail fiscally as well as fail to correct its misbehavior. Yet we'll see clamoring to save it by those to whom moral hazard comes naturally (for no good reasons, to say the least). Oh, and if the people in California's government get desperate, they can always say that they and their huge electoral vote contingent will be angry and vote Democratic this year if they are snubbed by the Bush administration (while the irony of the un-learning that voting heavily Democratic represents will go unnoticed and unannounced).

]]> By: StockBoySF http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156874 StockBoySF Sun, 05 Oct 2008 06:02:45 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156874 Let's see... many states like CA and NY pay more to the federal government than they receive. Many states, like Alaska receive more money from the federal government than they pay in taxes. Also Alaska is flush with cash from the increase in energy prices and Palin likes to point out that she has been able to give some of that money back to Alaska's citizens. Can we stop the give away of money to Alaska? I think it's high time we revisited the issue. Times have changed.<br><br><a href="http://thecitizens.blogspot.com/2008/09/after-rbr-posted-about-alaskas-lack-of.html">http://thecitizens.blogspot.com/2008/09/after-r...</a> Let's see… many states like CA and NY pay more to the federal government than they receive. Many states, like Alaska receive more money from the federal government than they pay in taxes. Also Alaska is flush with cash from the increase in energy prices and Palin likes to point out that she has been able to give some of that money back to Alaska's citizens. Can we stop the give away of money to Alaska? I think it's high time we revisited the issue. Times have changed.

http://thecitizens.blogspot.com/2008/09/after-r…

]]> By: GeorgeSorwell http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156863 GeorgeSorwell Sun, 05 Oct 2008 03:59:47 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156863 Thanks for the explanation, JW. Thanks for the explanation, JW.

]]> By: JWeidner http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156822 JWeidner Sat, 04 Oct 2008 19:09:03 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156822 Here's what I know of...I heard an interview with CA state Treasurer Bill Lockyer. He had laid out the situation as I described above. His prediction was that if the Congressional bill passed and was signed into law, the credit markets ought to start thawing, making it less likely that CA would need to approach the Federal government.<br><br>Arnold approached the Feds strictly as a "hey, here's our situation if this bill doesn't pass" type of thing. As far as I know, it was never to be structured as a bailout, just a loan to be paid back when tax revenues start coming in at the start of '09 (Lockyer calls it a revenue anticipation note sale). According to Lockyer, this is SOP for the state, something they do every year.<br><br>I don't know if the situation was exacerbated somewhat by the fact that the state budget was so late being turned in and approved. I think it was something like 80+ days late. However, the larger problem was simply that no financial institution was lending due to the financial crisis. Here's what I know of…I heard an interview with CA state Treasurer Bill Lockyer. He had laid out the situation as I described above. His prediction was that if the Congressional bill passed and was signed into law, the credit markets ought to start thawing, making it less likely that CA would need to approach the Federal government.

Arnold approached the Feds strictly as a “hey, here's our situation if this bill doesn't pass” type of thing. As far as I know, it was never to be structured as a bailout, just a loan to be paid back when tax revenues start coming in at the start of '09 (Lockyer calls it a revenue anticipation note sale). According to Lockyer, this is SOP for the state, something they do every year.

I don't know if the situation was exacerbated somewhat by the fact that the state budget was so late being turned in and approved. I think it was something like 80+ days late. However, the larger problem was simply that no financial institution was lending due to the financial crisis.

]]> By: GeorgeSorwell http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156795 GeorgeSorwell Sat, 04 Oct 2008 16:28:29 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156795 JWeidner--<br><br>So, because the bailout passed, the credit crunch is easing, and California won't need a bailout of its own?<br><br>(I'm not playing "gotcha" here--I'd just like to know if the bailout is performing as advertised.) JWeidner–

So, because the bailout passed, the credit crunch is easing, and California won't need a bailout of its own?

(I'm not playing “gotcha” here–I'd just like to know if the bailout is performing as advertised.)

]]> By: JWeidner http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156793 JWeidner Sat, 04 Oct 2008 16:19:57 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156793 People, please.<br><br>I live in California. This is not a bailout loan. California routinely takes out a loan toward the end of each year so as to keep state programs running and pay state employees. Then when taxes come in at the start of the next year, the loan is paid back.<br><br>The problem this year is that the credit markets (where California would normally go for such a loan) are frozen. California can't get a loan through commercial channels, because the larger financial crisis has caused so much tightening in the credit markets.<br><br>Arnold approached the federal government about this $7 Billion loan before Congress passed the bailout package. The expectation was that if the Congressional bailout passed, the commercial credit markets would start to loosen up and California would get its loan from usual sources. However, if the bailout didn't pass, Arnold simply notified the federal government that he may approach them for the loan instead. People, please.

I live in California. This is not a bailout loan. California routinely takes out a loan toward the end of each year so as to keep state programs running and pay state employees. Then when taxes come in at the start of the next year, the loan is paid back.

The problem this year is that the credit markets (where California would normally go for such a loan) are frozen. California can't get a loan through commercial channels, because the larger financial crisis has caused so much tightening in the credit markets.

Arnold approached the federal government about this $7 Billion loan before Congress passed the bailout package. The expectation was that if the Congressional bailout passed, the commercial credit markets would start to loosen up and California would get its loan from usual sources. However, if the bailout didn't pass, Arnold simply notified the federal government that he may approach them for the loan instead.

]]> By: Polimom http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156792 Polimom Sat, 04 Oct 2008 16:01:10 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156792 California's been running on a wing and a prayer for a very long time. Their budgetary woes are legendary, and it's only going to get worse for them, as the PERS bill comes due. California's been running on a wing and a prayer for a very long time. Their budgetary woes are legendary, and it's only going to get worse for them, as the PERS bill comes due.

]]> By: Rudi http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156784 Rudi Sat, 04 Oct 2008 15:38:19 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156784 Maybe somebody needs to use Google to look at the situation. States cannot run deficits, by law and state constitutions, and have to run a balanced budget. No one cried for Michigan in September 2007, the Democrat governor and Republican House reached a compromise before the Michigan shut down. Maybe somebody needs to use Google to look at the situation. States cannot run deficits, by law and state constitutions, and have to run a balanced budget. No one cried for Michigan in September 2007, the Democrat governor and Republican House reached a compromise before the Michigan shut down.

]]> By: superdestroyer http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156776 superdestroyer Sat, 04 Oct 2008 14:56:09 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156776 As the U.S. becomes a one party state and the Democrats want to nationalize all problems, is there any question that the government wil go ahead and bail out the states. The real question is what price will the states pay for handing over control to the federal government. All the next Sec. of Treasury will have to do is tell a state like California that is they so something that DC Democrats do not like, like not raising states and repealing Propl 13, then the feds will cut the bailout money. <br><br>Are states ready to surrender their automony for more money. My guess is that the states will do anything for more money. As the U.S. becomes a one party state and the Democrats want to nationalize all problems, is there any question that the government wil go ahead and bail out the states. The real question is what price will the states pay for handing over control to the federal government. All the next Sec. of Treasury will have to do is tell a state like California that is they so something that DC Democrats do not like, like not raising states and repealing Propl 13, then the feds will cut the bailout money.

Are states ready to surrender their automony for more money. My guess is that the states will do anything for more money.

]]> By: Marlowecan http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156775 Marlowecan Sat, 04 Oct 2008 14:54:56 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156775 "...the kind of short-term financing California and other states and local governments routinely rely on to keep operating."<br><br>So American states - including California, which has an economy larger than most countries - are now the same as those fiscally irresponsible people who live from week to week on payday loan services at high interest rates?<br><br>People get the governments they deserve . . . and Americans' obsession with not paying taxes, but insisting on larger government . . . results in this. On a larger scale, the federal government's indebtedness to Chinese autocrats is the same thing.<br><br>This sort of financing is now "routine" . . . especially since fiscal conservatives have been exiled from the porker conservative GOP. <br><br>Americans can only blame themselves for this state of affairs. <br>They would not live this irresponsibly themselves, but they refuse to pay the extra dollar or two here or there that would support the government programs and entitlements they can't seem to do without. “…the kind of short-term financing California and other states and local governments routinely rely on to keep operating.”

So American states – including California, which has an economy larger than most countries – are now the same as those fiscally irresponsible people who live from week to week on payday loan services at high interest rates?

People get the governments they deserve . . . and Americans' obsession with not paying taxes, but insisting on larger government . . . results in this. On a larger scale, the federal government's indebtedness to Chinese autocrats is the same thing.

This sort of financing is now “routine” . . . especially since fiscal conservatives have been exiled from the porker conservative GOP.

Americans can only blame themselves for this state of affairs.
They would not live this irresponsibly themselves, but they refuse to pay the extra dollar or two here or there that would support the government programs and entitlements they can't seem to do without.

]]> By: Jazz http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156767 Jazz Sat, 04 Oct 2008 14:08:11 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156767 I believe that was the theory, yes. I believe that was the theory, yes.

]]> By: GeorgeSorwell http://themoderatevoice.com/23198/will-california-get-the-next-bailout/comment-page-1/#comment-156764 GeorgeSorwell Sat, 04 Oct 2008 14:02:17 +0000 http://themoderatevoice.com/politics/california/23198/will-california-get-the-next-bailout/#comment-156764 Isn't the bailout supposed to ease the credit crunch? Isn't the bailout supposed to ease the credit crunch?

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