The Golden State's Fiscal Fraud | Stock News & Stock Market Analysis - IBD
Well, more zombie if you ask me!
More beneath the fold.
"Thanks to budget legerdemain, Brown and his Democratic allies in the legislature have posed themselves as the fiscal saviors of California, making brave choices to balance the books and get the economy growing again. But the fact is, the nation's largest and still-wealthiest state is in a fiscal fix from which it will be tough to extricate itself.
Democrats boast of running a "surplus." What they don't say is they only run a surplus by excluding costs for the state's out-of-control public-pension programs. If a company did this, it would be accused of fraud. In California, this gets you re-elected.
California's total debt is $118.17 billion, but when you add in what it really owes, that surges to an unbelievable $757 billion -- roughly equal to 46% of the state's total income. This is why the Mercatus Center at George Mason University recently ranked California 44th in the nation in terms of fiscal health.
Meanwhile, a recent survey of the nation's CEOs again ranked California's business climate dead last in the nation. Not surprisingly, according to business consultant Joe Varnish, this has led to some 1,687 companies moving out of California since 2008 -- the latest being California fast-food icon Carl's Jr."
Eventually this stuff runs afoul of Stein's Law, and then the house of cards comes crashing down. Illinois looks to be next up for the fall, unless California can somehow make a successful end run. I am not counting them out. Until then all fete Prince Moonbeam!
Stein's Law: "If something cannot go on forever, it will stop."
We're gonna need more beer, and corn, lot's of corn!
Hat tip: "The Golden State's Fiscal Fraud"