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Arnie…..Socialism doesn’t work….

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Houses don’t come cheap. Subsidizing  the broke dicks to buy them doesn’t work. Rewarding moochers doesn’t work either. California is the epitome of what does not work.  The whole political class does not work. Keep subsidizing what doesn’t work is a recipe for disaster.

You want to improve the economy …..make everybody work. Make something to sell. Quit giving all of our jobs to foreigners. We are going to have to nationalize the illegals and find them work to pay my social security check. Where are all those jobs coming from? The auto companies?

We have to get it through our thick heads that just financing future Medicare recipients will destroy the planet. We vote. Avoid scaring us old geezers. Most of us have lost our retirement income in stocks and home equity. Is your house gaining in value? What if you only have a few years left before you get thrown out on your ass from Walmart or McDonalds.

As radical as it sounds, we have  guns. We have 200 million of them.Taking over small oil countries is not a serious obstacle. How long did it take us  to take over the world’s third largest oil reserves in Iraq. 6 weeks.

Think Iran sleeps comfortably . They could be toast. Any one remember what we did to the Native Americans. How about Waco? Or even Ruby Ridge, Idaho.

Think riots. Blacks and Latinos are finally tasting success. Can we slam the door in their face. Think they’ll jump in and finance my hideaway in Sarasota? Which illegal is going to buy me out in redneck heaven Idaho so I can go fishing with my brother in Tampa? Funny now?

This will sound extreme under “normal” circumstances but the Germans of my grandfather’s generation stopped laughing as their government took over Czechoslovakia. Then invading Poland destroyed their world.

 As for us today, Saddam and his kids are worm food. When crunch time hits no one is safe. We burned millions of people to death in our past. Whether it makes us queasy or not we have a world wide reputation of getting what we want. But maybe this is just an exercise in fear mongering. Then again, maybe the world has to worry.

Unless……

Lord Obama will rescue them. Even the “Terminator”.

California Housing Fiscal Emergency Part Deux: California Housing and Economic Dynamics in Massive Recession. » Dr. Housing Bubble Blog

The Governator announced to the newly minted politicians on Monday that California is now officially in a fiscal emergency. He had called for a special session trying to resolve the issue but lame duck politicians were on “fact finding” junkets or simply playing hide the salami while Rome burned. These are the people leading our state which is the most powerful economic engine in the 50 states of the union. What an absolute disgrace. These people are getting 6-figure salaries and the only job they have is to represent the populace and they can’t seem to even get that right. Our deficit is ballooning each and every day and budget analysts are saying that we may be broke by February. I’d argue that we are already broke but to many debt is the same as wealth. Today, a group of Governors including Arnold are meeting with President-elect Obama for what I would imagine should be a fascinating spectacle of who can hold out the largest tin-can.

The state budget deficit is gigantic. To first understand this mess, you have to follow the money:

California revenues

Keep in mind these are estimates. A state as large as California with expenses over $100 billion is no small thing. But anyone can quickly look at the above pie chart and understand we are in serious trouble. The two biggest sources of revenue for the state are personal income tax and sales tax. These 2 areas make up 71% of all revenue sources. Well, you can already see the problem arising here. First, as much as people want to believe that Black Friday was somehow going to resurrect the economy one day does not make a trend. People are not spending as much and subsequently sales tax revenues are going to shock us on the downside. In terms of the personal income tax, well you can pretty much kiss a large portion of that goodbye. High paying bubble jobs like real estate agents, mortgage brokers, financial analysts, construction workers, car salesmen, and others in the FIRE economy are no longer going to be paying Uncle Arnold their chunk of gravy train day salary. The personal income tax damage will be obvious come Q1 and Q2 of 2009.

In addition, those that have no job are literally paying zero into this pot and we are having more and more fall into this category especially here in California that now has the 3rd highest unemployment rate in the nation:

California unemployment rate

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Written by mrcauser

December 4, 2008 at 8:18 pm

Posted in Uncategorized

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