California goes Busto

[ECA]

California will run out of funds at the end of this month and has started issuing IOUs to its creditors.

California if it were an independant country would have the 9th largest economy in the world ( ahead of Spain, Brazil, Canada, etc ).

If the crisis isn't solved very soon there will be huge amounts of public worker pay cuts/redundancies and it's going to be lots of fun.

What does this mean for us? Well if California goes bust it's going to have a lot of economic repercussions in the states and thats going to bounce over to everywhere else as well ( Russia is barely ahead of California , and we're not that far ahead of russia [ UK ] ).

Imagine if your company does business with the state and gets paid in IOUs....how long would your company survive?

What's particularly ironic is that you need a 2/3rds majority to pass the state budget in California so passing tax rises/spending cuts is incredibly tough and the public rejects any tax increases/cuts in their referendums ( aka ballot initiatives attached to regular representative voting ).

Ie they've fucked it up themselves by overspending and undertaxing.

Fun!

 

[old.Tohtori]

Interesting to see if this effects my life already. So far if anything has, it's been so miniscule that it doesn't matter.

From a completely selfish "f*ck the rest" POV that seems to be the trend

It's a nice thing that california is so polite to it's denizens, but this would eventually happen in a pinch.

 

[Jiggs]

They effectively voted themselves into debt, quite amusing.

 

[SilverHood]

California will turn itself into a bank holding company, allowing them access to TARP funds...

 

[Nate]

Is it Arnie's fault?

 

[Ch3tan]

Is it Arnie's fault?

If you read the original post, you'd see it wasn't.

 

[Aada]

California will run out of funds at the end of this month and has started issuing IOUs to its creditors.

California if it were an independant country would have the 9th largest economy in the world ( ahead of Spain, Brazil, Canada, etc ).

If the crisis isn't solved very soon there will be huge amounts of public worker pay cuts/redundancies and it's going to be lots of fun.

What does this mean for us? Well if California goes bust it's going to have a lot of economic repercussions in the states and thats going to bounce over to everywhere else as well ( Russia is barely ahead of California , and we're not that far ahead of russia [ UK ] ).

Imagine if your company does business with the state and gets paid in IOUs....how long would your company survive?

What's particularly ironic is that you need a 2/3rds majority to pass the state budget in California so passing tax rises/spending cuts is incredibly tough and the public rejects any tax increases/cuts in their referendums ( aka ballot initiatives attached to regular representative voting ).

Ie they've fucked it up themselves by overspending and undertaxing.

Fun!

Stop whipping people into a panic.

Back last September when the whole world was supposedly going into melt down me and my girlfriend were on a 2 week holiday sunning it up in Egypt and all you could hear around the pools were people panicing about the end of the world and how everyone would be on the breadline and you wouldn't even be able to nip out for a paper because money would be so tight.

You know what? the changes haven't really effected me so much that i have noticed sure food has gone up but that hasn't forced me to pack my trolly with value baked beans/pasta to live on for my entire life.

We still go out once a week to the cinema and eat at a restaurant such as a Mexican/Indian/pub lunch.

We still go out shopping and treat ourselves.

Shock horror we even went on a holiday this year.

The only people i see the crunch effecting are those stupid twats in their £200,000 20 bedroom houses with BMW's parked on the drive all saying for sale because they are up to their eyes in debt they can no longer breathe.

The crunch hasn't effected us at all really sure prices have gone up but they always do.

 

[Nate]

If you read the original post, you'd see it wasn't.

I already had, didn't see "It isn't Arnie's fault though" ;o

 

[Zenith.UK]

You know what? the changes haven't really effected me so much that i have noticed sure food has gone up but that hasn't forced me to pack my trolly with value baked beans/pasta to live on for my entire life.

We still go out once a week to the cinema and eat at a restaurant such as a Mexican/Indian/pub lunch.

We still go out shopping and treat ourselves.

Shock horror we even went on a holiday this year.

The only people i see the crunch effecting are those stupid twats in their £200,000 20 bedroom houses with BMW's parked on the drive all saying for sale because they are up to their eyes in debt they can no longer breathe.

The crunch hasn't effected us at all really sure prices have gone up but they always do.

I live in an ordinary 3 bedroom semi and I am on 75% of the national average wage with a wife and 3 kids. We both work and yet childcare is killing our finances. We are borderline better off unemployed, but I couldn't live with myself in that case.
We've had to economise on our food shopping because we can't afford the 30-40% increase in prices.
The last time we went to the cinema was to see "Star Trek" and that was a freebie because we know someone who works there.
The last time we went to a restaurant was just before Christmas last year.
The only treats we allow ourselves are maybe a pack of doughnuts a week, or a large pack of Penguins.
Holiday? What's that? My last going away holiday was to Cornwall in June 2006.

From the list of things that you mention, I'm guessing you live somewhere south of the Midlands since going to the cinema, restaurant etc on a regular basis are usually "southern" activities. People who live more "up north" tend to spend more time at home than going out.
Don't take that as a negative criticism, but as an observation of the current state of the UK.

 

[Aada]

I live in an ordinary 3 bedroom semi and I am on 75% of the national average wage with a wife and 3 kids. We both work and yet childcare is killing our finances. We are borderline better off unemployed, but I couldn't live with myself in that case.
We've had to economise on our food shopping because we can't afford the 30-40% increase in prices.
The last time we went to the cinema was to see "Star Trek" and that was a freebie because we know someone who works there.
The last time we went to a restaurant was just before Christmas last year.
The only treats we allow ourselves are maybe a pack of doughnuts a week, or a large pack of Penguins.
Holiday? What's that? My last going away holiday was to Cornwall in June 2006.

From the list of things that you mention, I'm guessing you live somewhere south of the Midlands since going to the cinema, restaurant etc on a regular basis are usually "southern" activities. People who live more "up north" tend to spend more time at home than going out.
Don't take that as a negative criticism, but as an observation of the current state of the UK.

I live in Nottinghamshire.

 

[Damini]

Stop whipping people into a panic.

Back last September when the whole world was supposedly going into melt down me and my girlfriend were on a 2 week holiday sunning it up in Egypt and all you could hear around the pools were people panicing about the end of the world and how everyone would be on the breadline and you wouldn't even be able to nip out for a paper because money would be so tight.

You know what? the changes haven't really effected me so much that i have noticed sure food has gone up but that hasn't forced me to pack my trolly with value baked beans/pasta to live on for my entire life.

We still go out once a week to the cinema and eat at a restaurant such as a Mexican/Indian/pub lunch.

We still go out shopping and treat ourselves.

Shock horror we even went on a holiday this year.

The only people i see the crunch effecting are those stupid twats in their £200,000 20 bedroom houses with BMW's parked on the drive all saying for sale because they are up to their eyes in debt they can no longer breathe.

The crunch hasn't effected us at all really sure prices have gone up but they always do.

Glad it hasn't affected you. It's wrecked me.

 

[Aada]

Glad it hasn't affected you. It's wrecked me.

No offence but if it effected you, you were probably not in the best financial state before all this happened.

If i'm wrong i apologise.

All the people i know who are in trouble had ridiculous mortgages that they couldn't afford in the first place and a huge amount on credit cards/loans already.

We have a credit card like most people but don't have a ridiculous £10,000 limit or whatever it is these days we have a £500 limit that can be managed, a friend of mine is in a ridiculous mess with his finances he has a £5,000 limit on his credit card and he has maxed it i asked him what the hell posessed him to spend that amount of money on it in the first place the answer i got was 'they kept upping my limit so i kept spending on it'.

 

[Ch3tan]

You can be careful as you like with money aada, some poeple just cannot cope with the increases in price. You cannot tar everyone with money troubles as being bad with money.

 

[Tom]

I live in an ordinary 3 bedroom semi and I am on 75% of the national average wage with a wife and 3 kids. We both work and yet childcare is killing our finances. We are borderline better off unemployed, but I couldn't live with myself in that case.

You know, and this isn't in any way a criticism, but traditionally such childcare may have been provided for by relatives, who would normally live around the corner.

 

[Damini]

No offence but if it effected you, you were probably not in the best financial state before all this happened.

If i'm wrong i apologise.

All the people i know who are in trouble had ridiculous mortgages that they couldn't afford in the first place and a huge amount on credit cards/loans already.

You're wrong.

 

[Tom]

I concur - payment times from my clients have increased massively since all this fuss started. As a result, I haven't been able to pay my tax bills on time as I once always did.

 

[rynnor]

Its a bugger - even when you do have money you feel you should stash it against future problems - I wonder how bad 3rd n 4th quarter will be if swine flu hammers the uk as predicted - not good

 

[Ctuchik]

Stop whipping people into a panic.

yes because the wallstreet bigshots REALLY do read this forum.....