CA more risky than Greece warns JPMorgan CEO (bankruptcy, tax)

[Calix]

As if we didn't already know this one, the state is now considered a bigger default risk than the nation of Greece.

California is a greater risk than Greece, warns JP Morgan chief - Telegraph

This state needs to cut the ridiculous public sector spending and provide relief to businesses and taxpayers who slave for the machine. Since they won't, the tax base keeps eroding.

With the natural resources, labor talent, weather, and at one time infrastructure, CA grew to become largest state economy in the US, it still is, but virtually no growth compared to other states and will eventually fade.

CA could be so much more than it is, but the state government should be voted out from top to bottom. The Demopublicans (yea, they are mostly all the same to me) have destroyed this state and the same retreads are re-elected over and over again. It is time for some fresh leadership. And yes, please no more Jerry "Era of Limits" Brown type politicians that think that by simply stopping building infrastructure, you can punish people into submission or force them to leave.

The majority of the ones who will leave are the productive citizens looking for opportunity.

[GoldenZephyr]

Who would have thought this wonderful state would end up in the mess that it is in today just 30 years ago. I think that the road to financial ruin started with Gov. Jerry Brown, and now they want to run him again.

We need help. Maybe CA will default after all. Only way to clear out the bloated pension obligations, every major city should do the same.

[hsw]

CA and NYC are world's two most powerful economies, so feds will bail them out (they're each in deep trouble as rich taxpayers can easily flee to TX in era of working via Net)

PIIGS (and UK) are relative economic munchkins vs CA or NYC...and need to be bailed out by the Germans (and possibly US will need to bail out the hapless Brits, the irony)

Bankruptcy (or some equivalent) will be needed to break the union parasites and the welfare crowd who congregate in these overly generous, overly taxed places

Would bet on ability of ever-creative CA to perform such creative destruction...and come up w/a state gvt that's along lines of TX's: world's most efficient, pro-business state/local government...but it'll be a bumpy few yrs

[native56]

At some point CA and the US will enter a true crisis stage. We will be told there is nothing left to cut and the only way out is through massively increased taxation. We will then become a poorer version of Europe where opportunity is dead for the average guy. Our kids will live their lives under tremendous taxation and no hope to improve their lot. The American dream will be gone.

[mrzod]

does that mean capitalism cannot succeed? just like communism?

[brubaker]

Hmmmm:

Jamie Dimon, chairman of JP Morgan Chase, has warned American investors should be more worried about the risk of default of the state of California than of Greece's current debt woes.

Probably because there are more American dollars invested in CA?
Did anyone even read the article?

[mysticaltyger]

Originally Posted by mrzod

does that mean capitalism cannot succeed? just like communism?

Unforunately, the Crony Capitalism vs Socialism paradigm that now dominates America's economy will not succeed. Both are really more similar to than different. Both involve blocking or limiting the competition that makes for a solid economy.

And all the while Americans are fighting each other about which type of dysfunction we should have, when the real answer is "neither of the two".

[mysticaltyger]

Originally Posted by brubaker

Hmmmm:

Probably because there are more American dollars invested in CA?
Did anyone even read the article?

That's true. But California has the same or lower debt rating as Greece, so what the OP said is not off base.

And both Greece & CA share many of the same underlying problems---overgenerous public sector pensions.

[Capt. Dan]

Originally Posted by mrzod

does that mean capitalism cannot succeed? just like communism?

I am not intelligent enough to come up with any system that is better than capitalism. But i am intelligent enough to realize that one of the major flaws of capitalism is that it cant be seperated from greed.Greed is the engine that drives capitalism IMO.

[Luke9686]

Originally Posted by Capt. Dan

I am not intelligent enough to come up with any system that is better than capitalism. But i am intelligent enough to realize that one of the major flaws of capitalism is that it cant be seperated from greed.Greed is the engine that drives capitalism IMO.

Unfortunately, like mysticaltyger said, we don't run on true capitalism. Under a pure version of capitalism, it's the perfect system. What we have are a few dominate corporations that push out any competition, all through legislation. If we stop letting lobbyists run our system, and bring back pure capitalism, your state and our country will come back to glory. Unfortunately, there are a few corporate bigwigs that will never let that happen.