Keeps getting better out here...

[Big Train]

Hot Air » Blog Archive » California unemployment hits 11.4%; Update: CA bonds going to junk status? (http://hotair.com/archives/2009/06/19/california-unemployment-hits-114/)


It's a good thing we still have cheap lettuce to eat and strong unions providing good jobs for all. I apologize to other states for dragging you down as we just cannot seem to get our shit together out here.


As if Californians don’t have enough problems. The Department of Labor reported this morning that California’s unemployment rate jumped to 11.4%, making it the nation’s fifth-worst state on that measure. It continued an upward trajectory that began over a year ago:

California’s unemployment rate shot up to 11.5% in May, its highest level since current record-keeping began more than three decades ago.

That’s a substantial increase over a revised rate of 11.1% in April, the U.S. Department of Labor reported this morning. …

Only four states have higher unemployment rates than California: Michigan at 14.1%, Oregon at 12.4% and Rhode Island and South Carolina, tied at 12.1%.

The numbers will get worse this summer, as California works through a massive budget crisis that threatens to sink the state into bankruptcy. Governor Arnold Schwarzenegger and the legislature must close a $25 billion deficit, and the voters have already rejected new taxes as a solution — not suprising, given their status as one of the most-taxed states in the nation. Schwarzenegger wants extensive cuts instead, which will lay off thousands of state workers and add to the unemployment problem in the short term. Expect this news to get worse all year long.

Given that, one might think that the players in Sacramento would be taking this seriously. Apparently not:

Gov. Arnold Schwarzenegger, who has warned lawmakers they need to act boldly and make some tough budget choices, sent Senate President Pro Tem Darrell Steinberg a metal sculpture of bull testicles.

It was intended as a gag gift but Steinberg, a Sacramento Democrat, was not amused and returned the football-sized gift with a terse note about the seriousness of the ongoing negotiations. …

According to the sources, Schwarzenegger’s gift was in response to an earlier gag gift he had received from Steinberg: a package of mushrooms after the governor called Democrats’ budget proposals, which included tax increases, “hallucinatory.”

Maybe both of them should focus on fixing the budget rather than playing practical jokes.

Update: Moody’s warns California that a failure to produce a rational budget will result in a “multi-notch” downward rating on their debt:

California, struggling to close a $24.3 billion budget gap, faces the prospect of a “multi-notch” downgrade in its credit rating if the state’s legislature fails to act quickly to produce a budget, Moody’s Investors Service warned on Friday.

The ratings agency’s decision to place California’s general obligation debt on alert for such a dramatic possible downgrade stunned state officials. …

The state’s current A2 credit rating is Moody’s sixth-highest investment grade and makes California the lowest rated of the 50 states. The A2 rating is just five notches above speculative status and Moody’s raised the potential for the rating to tumble toward “junk” status. …

A downgrade could push California’s borrowing costs up at time when state officials expect to issue up to $9 billion in revenue anticipation notes as soon as possible after a budget agreement is reached — a deal whose timing is in doubt.

Moody’s said California’s leasing debt and other state-related debt are also on review, affecting a total of $72 billion of debt.

California bonds will reach junk status, which will match the state of their political class in Sacramento. This state takes in more revenue per person than almost every other state and still manages to squander 20% more above that. Moody’s has it diagnosed perfectly.

[ELVIS]

You's better be planing on hauling yer ass outta Cali ASAP!


:elvis:

[Nitro Express]

Hot Air » Blog Archive » California unemployment hits 11.4%; Update: CA bonds going to junk status? (http://hotair.com/archives/2009/06/19/california-unemployment-hits-114/)


It's a good thing we still have cheap lettuce to eat and strong unions providing good jobs for all. I apologize to other states for dragging you down as we just cannot seem to get our shit together out here.


As if Californians don’t have enough problems. The Department of Labor reported this morning that California’s unemployment rate jumped to 11.4%, making it the nation’s fifth-worst state on that measure. It continued an upward trajectory that began over a year ago:

California’s unemployment rate shot up to 11.5% in May, its highest level since current record-keeping began more than three decades ago.

That’s a substantial increase over a revised rate of 11.1% in April, the U.S. Department of Labor reported this morning. …

Only four states have higher unemployment rates than California: Michigan at 14.1%, Oregon at 12.4% and Rhode Island and South Carolina, tied at 12.1%.

The numbers will get worse this summer, as California works through a massive budget crisis that threatens to sink the state into bankruptcy. Governor Arnold Schwarzenegger and the legislature must close a $25 billion deficit, and the voters have already rejected new taxes as a solution — not suprising, given their status as one of the most-taxed states in the nation. Schwarzenegger wants extensive cuts instead, which will lay off thousands of state workers and add to the unemployment problem in the short term. Expect this news to get worse all year long.

Given that, one might think that the players in Sacramento would be taking this seriously. Apparently not:

Gov. Arnold Schwarzenegger, who has warned lawmakers they need to act boldly and make some tough budget choices, sent Senate President Pro Tem Darrell Steinberg a metal sculpture of bull testicles.

It was intended as a gag gift but Steinberg, a Sacramento Democrat, was not amused and returned the football-sized gift with a terse note about the seriousness of the ongoing negotiations. …

According to the sources, Schwarzenegger’s gift was in response to an earlier gag gift he had received from Steinberg: a package of mushrooms after the governor called Democrats’ budget proposals, which included tax increases, “hallucinatory.”

Maybe both of them should focus on fixing the budget rather than playing practical jokes.

Update: Moody’s warns California that a failure to produce a rational budget will result in a “multi-notch” downward rating on their debt:

California, struggling to close a $24.3 billion budget gap, faces the prospect of a “multi-notch” downgrade in its credit rating if the state’s legislature fails to act quickly to produce a budget, Moody’s Investors Service warned on Friday.

The ratings agency’s decision to place California’s general obligation debt on alert for such a dramatic possible downgrade stunned state officials. …

The state’s current A2 credit rating is Moody’s sixth-highest investment grade and makes California the lowest rated of the 50 states. The A2 rating is just five notches above speculative status and Moody’s raised the potential for the rating to tumble toward “junk” status. …

A downgrade could push California’s borrowing costs up at time when state officials expect to issue up to $9 billion in revenue anticipation notes as soon as possible after a budget agreement is reached — a deal whose timing is in doubt.

Moody’s said California’s leasing debt and other state-related debt are also on review, affecting a total of $72 billion of debt.

California bonds will reach junk status, which will match the state of their political class in Sacramento. This state takes in more revenue per person than almost every other state and still manages to squander 20% more above that. Moody’s has it diagnosed perfectly.

California could have fixed it's problems but the state government spent like a drunk sailor. I mean the citizens got The Govenator because the former govenor raised vehicle registration fees. Taxes there were about where people could tolerate them in good times. Lose the jobs and the only thing left to do is cut the spending. California's problem has always been reckless spending and overconfidence. It got full of itself and now look at what has happened.

[Nitro Express]

Arnold has warned the law makers about the problems since he got in office but if the state legislature stone walls you on cutting costs, you can't do shit.

Our fish and game department got ripped off by California. Their fish and game dept. bought some game fish minnow stock and paid for it with a fucking IOU. I mean that's hitting the skids when the former sixth largest economy in the world can't even pay it's bills for some fucking fish.

[Nitro Express]

Add in a massive flu pandemic this winter and things will be nice. That will coffin nail the economy.

[GAR]

Chicago's looking less corrupt. CA legislators gave themselves the biggest raises, and increased administrations staffing levels to record proportions: currently we have 1 California state worker for every 7 taxpayer.

How did it get that way? Democrappists!

[Nitro Express]

Chicago's looking less corrupt. CA legislators gave themselves the biggest raises, and increased administrations staffing levels to record proportions: currently we have 1 California state worker for every 7 taxpayer.

How did it get that way? Democrappists!

My dad used to do a lot of construction work in California when I was a kid. I would go to school and spend the winters in Sun Valley, Idaho and spend the summers in Newport Beach. My dad just got tired of all the hassle in Cali in the 1980's and stopped messing with it.

My brother was a resident of California and passed away. Man. Dealing with the state over the probate of his home and estate was a bitch. I really learned to hate that state after that ordeal. It's sad because I remember Cali when it was in it's heyday. Man. How it has fallen.

[Nitro Express]

I really don't think the Republicans are any better than the Democrats. Look at how much Bush spent and Reagan spent. It all comes down to fiscal responsibility. The state I live in now Wyoming, runs a surplus but we have oil resources. But Montana also has a surplus and has taken no federal bailout money. They just managed their resources well. California did a line of coke off a hookers ass, got drunk and spent all the money.

[GAR]

Thats a pretty fair ass-essment right there.

It all started with Governor Moonbeam, shacking up with Ronstadt in the seventies and went downhill with the yuppies coming of age in the greedy eighties in Sacramento.

[letsrock]

move to Detroit or Cleveland.

[FORD]

How did it get that way? Democrappists!

Yeah.... "Democrappists" like Herr Gropenator, Pete Wilson, and ENRON. :rolleyes:

Not to mention the same type of "mob rule" ballot initiatives that have bankrupted Washington state, because idiots like yourself never read past the rhetorical ballot title (which is always something simplistic like "Do you want lower taxes?") to see what the fucking poorly written law actually DOES.

Worst example of this in California would be Proposition 13 back in the 70's. That one bad law alone has cost that state billions. Probably trillions by now.

[Kristy]

No matter how much how much of a total shithole Cleveland is at least it has somewhat of a stable economy. The trouble with California that nobody really wants to say is that that state let its welfare system run rampant, passed way too many environmental laws and like the rest of America outsourced most of what was making it money in the first place. Even Hollywood doesn't film most of the the movies they make on studio lots in L.A. anymore do to increasing union labor cost, even tourism is down. California has been so poorly mismanaged and at the ready to implode on itself any second I don't think no amount of baliout money is going to save it. If that state is going to survive it needs to be desperately gutted from the inside on so many levels. Until that day happens it is inevitably on the path to become America's own third-world nation so-to-speak.

[sadaist]

It's sad because I remember Cali when it was in it's heyday. Man. How it has fallen.

I erased my first writing here. It was just a long drawn out post on all that used to be great in So CA and what's fucking it up. I'll keep it short & just say that I agree with you Nitro...very sad indeed.

:(

[Nitro Express]

No matter how much how much of a total shithole Cleveland is at least it has somewhat of a stable economy. The trouble with California that nobody really wants to say is that that state let its welfare system run rampant, passed way too many environmental laws and like the rest of America outsourced most of what was making it money in the first place. Even Hollywood doesn't film most of the the movies they make on studio lots in L.A. anymore do to increasing union labor cost, even tourism is down. California has been so poorly mismanaged and at the ready to implode on itself any second I don't think no amount of baliout money is going to save it. If that state is going to survive it needs to be desperately gutted from the inside on so many levels. Until that day happens it is inevitably on the path to become America's own third-world nation so-to-speak.

Pretty much. Everyone wanted to move there because of the economy and nice weather. It boomed for decades and people took it for granted that California was the sixth largest economy in the world rivaling France in Gross Domestic Product. The politicians rode the hype all they could, increasing govt. and taxes and fees. People were willing to put up with it because they wanted to stay in California. Now California is too populated, jobs have left due to the high business cost and meddling govt. there. Not only is the state government in debt due to it's corruption and greed the citizens there are leveraged to the hilt. How could they not be with home prices being what they were there. Then they borrowed against their equity in their home to get in debt even more. California was a huge bubble and it popped.

[Nitro Express]

I maintain every place has the potential to be a shit hole. It's not so much what city you live in, it's your circumstances. I'm sure there are estates in Cleveland that are very nice. Everyone seems to think Hawaii is paradise. Not if you live in some shit hole apartment in the worst part of Oahu. It's all relative.

[Nitro Express]

The United States will never recover economically until we run a trade surplus due to exporting goods around the world like we used to. I remember being in college and hearing all the bullshit out how exporting manufacturing jobs was a good thing and that the service industry and technology would make up for it. Yeah right. Last time I was in the Silicon Valley is was a sad shadow of what it was in the 1980's. The service side is now in India.

The state with the wealthiest citizens is Maryland. After I read this I thought about why. Washington DC. The government employees than make a lot of money live in Maryland. So basically the govt. has become the biggest employer and is the biggest source of wealth. The hardest hit states are the ones who used to be manufacturing bases. Our biggest export is bailed cardboard. The cardboard you put in the recycle bin is our biggest export. Not Boeing aircraft and not military hardware. Fucking used cardboard.

[Nitro Express]

The biggest employer in most medium sized cities is the local hospital. Of course the money has to come from somewhere to keep that going and everyone is looking to the govt. to bail out healthcare. So basically, govt. is the biggest employer in the US and it produces nothing and only takes. The only thing our govt. exports is war. We like to bomb things and we are good at it.

[Nitro Express]

If you are naked in a hot tube of hot naked women and the champaign is flowing. Do your really care that you are in Cleveland? :D

[ULTRAMAN VH]

The United States will never recover economically until we run a trade surplus due to exporting goods around the world like we used to. I remember being in college and hearing all the bullshit out how exporting manufacturing jobs was a good thing and that the service industry and technology would make up for it. Yeah right. Last time I was in the Silicon Valley is was a sad shadow of what it was in the 1980's. The service side is now in India.

The state with the wealthiest citizens is Maryland. After I read this I thought about why. Washington DC. The government employees than make a lot of money live in Maryland. So basically the govt. has become the biggest employer and is the biggest source of wealth. The hardest hit states are the ones who used to be manufacturing bases. Our biggest export is bailed cardboard. The cardboard you put in the recycle bin is our biggest export. Not Boeing aircraft and not military hardware. Fucking used cardboard.

Yep, and MD's population continues to grow via government jobs. Just had a huge spurt of government growth in Fort Meade. The politicians continue to punish small businesses with huge tax hikes forcing them to pick up and move to nearby states. Meanwhile the Governor continues to cottle illegals and crush the middle class with a history making tax hike which he promised he would never do. I believe its one of the largest tax hikes ever implemented on a state. Oh and how could I forget the California emissions standards the Maryland Government is going to adopt.

[Nitro Express]

The only place where property values are actually going up is the greater Washington DC area. This is due to the jobs being created by our expanding federal govt. Basically the federal govt. is doing on a larger scale exactly what killed California. The only difference between Washington DC and Sacramento is the level of greed and stupidity. It's a sickness.

[Nitro Express]

These asshole politicians and entrenched govt. beurocrats are sailing on a direct course to a revolution caused by excessive taxation and mismanagement. You only can squeeze people so far before they lose it. It's coming if the current bullshit continues.

[Kristy]

I'm sure there are estates in Cleveland that are very nice.


When I was in Cleveland about 2 years ago there were certain parts of the city so bad that the crumbling infrastructure was demolished, bought up by the rich and rebuilt with these pre-fab apartment-like structures only to be later fenced off.

I did kind of like Cleveland - they have some great bars one where I actually met Tom Arnold - but would never, ever would want to live there.

[ELVIS]

The biggest employer in most medium sized cities is the local hospital. Of course the money has to come from somewhere to keep that going and everyone is looking to the govt. to bail out healthcare. So basically, govt. is the biggest employer in the US and it produces nothing and only takes. The only thing our govt. exports is war. We like to bomb things and we are good at it.

You and Kristy are the only posters in this thread that even sees some of the truth...

There is NO WAY for government run, national, or free, or socialized or what ever you want to call it, healthcare to work, or help with the economy...

There is no economy!

Real unemployment could already be close to 20%. Especially in California...

Hospitals are already laying off Registered Nurses in many areas and replacing them with Vocational educated nurses (LPN's and LVN's) due to the huge cost factor...

Another huge problem is nearly half of the nurses in this country are baby boomers, many of which are already working beyond their retirement age. Some as many as ten or more years beyond. Recently I worked with a nurse who was either 76 or 77...

So when national healthcare doubles the number of people trying to get medical services and the available workforce is cut in half, or more, as i predict. Where does that leave the system...

And last time I checked, doors are not being knocked down to get into Nursing or Medical or any subject related schools...


:elvis:

[ELVIS]

It's a good thing we still have cheap lettuce to eat and strong unions providing good jobs for all.

If you expect that to sustain itself for any length of time and basically out of thin air, save up a little money. I'm going to be putting a bridge on ebay pretty soon and i'll let you have it for a good Buy It Now price...


C'mon BT, it scares me that you may feel or think that things are poing to get better somehow...

I don't know what you do for a living, but whatever it is that you do, i'm interested in what you think about the future of your state and yourself...

I mean, if you think i'm all gloom and doom, let's hear a positive forecast...


:elvis:

[FORD]

ELVIS, do you even understand what Single Payer Health care is?

It's not government run health care. The feds won't walk in and take over your hospital.

The change is in the insurance. No corporate insurance companies. No ridiculous paperwork everytime you walk in to the hospital, or every time a procedure is done, nobody excluded for "pre existing conditions", etc.

Which means a lot less red tape, hoop jumping, and paper pushing bullshit. Which means lower administrative costs, including within the hospitals, clinics, and doctors offices.

The nursing shortage is a separate issue, and probably wouldn't be directly impacted by a change to a single payer system. Though indirectly, money saved by health care facilities in admin costs might be re-budgeted to hire nurses.

[Guitar Shark]

Edit - Nevermind - I misread ELVIS's post.

[ELVIS]

ELVIS, do you even understand what Single Payer Health care is?

The change is in the insurance. No corporate insurance companies. No ridiculous paperwork everytime you walk in to the hospital, or every time a procedure is done, nobody excluded for "pre existing conditions", etc.



Yes I do understand what it is and how it might work...

One aspect i've been meaning to bring up is choice and the idea of different levels of coverage...

Like for me personally, I would like an option that would cover real emergencies and an option for a minor ER visit or procedure that would give me the choice to pay out of pocket or a deductable...

And also the same out of pocket payment option for basic family MD visits, routine checkups and routine visits for medication monitoring and medication refills. And if a docror recomends a more costly test or referral to a specialist, then again, the choice to pay a deductable percentage or even the entire bill. The payment or co-payment could then be recognized by the insurance company in terms of lower premiums and or rewards...

So, if i'm sounding confusing (lack of sleep from pulling 16, 17, 18 hr shifts daily the past several days) my main point is based on the idea of having insurance paying for every little condition, visit, checkup, bandage, test, etc. This is a lot of what causes medical insurance to be way more expensive for employees, employers and any other payer involved...

Current insurance problems are what makes two Tylenol cost $110 and a $3.00 dressing cost over $300 on an itemized bill from a short hospital stay...

And then we have the big Pharma-Phreaks with lobbyists who are paid to twist arms and make big money...

And for something that is so huge and hugely expensive, i'd like to see any new program or reform beta-tested in one or two states prior to unleashing across the fruited planes...
:elvis:

[Big Train]

If you expect that to sustain itself for any length of time and basically out of thin air, save up a little money. I'm going to be putting a bridge on ebay pretty soon and i'll let you have it for a good Buy It Now price...


C'mon BT, it scares me that you may feel or think that things are poing to get better somehow...

I don't know what you do for a living, but whatever it is that you do, i'm interested in what you think about the future of your state and yourself...

I mean, if you think i'm all gloom and doom, let's hear a positive forecast...


:elvis:

It scares me that you didn't see the sarcasm in my statements.

I don't have a positive forecast for this state. What my hope is, if there is a silver lining, is that people finally stop with the PC crap and funding of every stupid thing that comes down the pike on that agenda. I'm seeing a resolve I have not before, as far as our props went. It getting to brass tacks now with the cuts coming. Finally I say. Teachers on hunger strikes, unions freaking out, the use of "the children" in damn near everything. It is kind of entertaining at least, if not overly dramatic.

[uvwx206]

Wtf?..

[ELVIS]

It scares me that you didn't see the sarcasm in my statements.



I did, and I would hope that the PC crap takes a seat on the back of the last bus because California, as well as nearly of the country needs to be on basic survival mode...

Meanwhile, Oblahma pretends he's worried about people smoking while on the other hand he plans to use tax on tobacco to pay for child healthcare...

My parents own a nice house in Chula Vista and i've been telling them to sell it before it's worth about 1000 loaves of bread...


:elvis:

[hideyoursheep]

What kind of bread?


Damn, I'm hungry.

[ZahZoo]

My parents own a nice house in Chula Vista and i've been telling them to sell it before it's worth about 1000 loaves of bread...


Similar thing here... parents house is in Santa Cruz. Paid for... Year and half ago it was valued at over $900K. Which is bullshit for a $30k house built/bought in the 60's... but it's lost about a quarter million in value this last year and falling.

Given their age they're better off staying put, but they could have cashed out and lived very nicely outside of California.

The markets there clearly need to get back to reality... unfortunately it will break millions of people and businesses financially. But a major correction is long over due!!

[Big Train]

As of today we are officially issuing IOU's.

I'll be buying up California bond issues on Monday. Since our credit rating is so close to being cut, which will effect the whole rest of the chain, the rates are up for bondholders. Of course it won't last long, as Barry will be forced to step in with the bailout he is so desperately avoiding.

Wouldn't want to have admit the bailout was a waste of time and energy. California's unemployment still picking up steam. Funemployment checks running out. Approval ratings dropping.