The Bankwatch

Tracking the consumer evolution of financial services

California is in trouble – hard to imagine what that means

Could we see the state of California go under … ?

California – a nightmare vision of the future | FT

The Californian budget crisis is so severe that all public employees are having to take pay cuts. Public-health services are under serious threat, and there is talk of pushing Aids patients and the terminally-ill out onto the streets. It has proved impossible to raise taxes any further and the bond markets are in revolt. California is looking to Washington for help. But with the federal government running budget deficits of 12% of GDP, and the federal debt pushing up towards 100% of GDP – you have to wonder whether California’s present might, once again, be America’s future.

Written by Colin Henderson

May 30, 2009 at 23:04

Posted in Uncategorized

Tagged with , ,

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