California Spiraling towards Bankruptcy: Downgraded yet again!

California’s bonds downgraded by S&P:

The latest blow came with the second downgrading in four weeks by Standard & Poor’s of the Golden State’s remaining $8.7 billion of economic recovery bonds, or ERBs. These bonds are backed by sales-tax revenue, which is taking a hit as consumers in California, like the rest of the country, rein in their spending.

California will not have the ability to borrow any more! Even if California is able to borrow, the interest rates will be so high we will have to cut more out of the budget or raise taxes.

The California government needs to pass a budget yesterday!


14 Responses to “California Spiraling towards Bankruptcy: Downgraded yet again!”

  1. 1 Mike Harmon January 28, 2009 at 11:15 AM

    Where did you get your blog layout from? I’d like to get one like it for my blog.

  2. 2 sbalassi January 28, 2009 at 11:28 AM

    I found it on WordPress. It’s one of the free ones, there are hundreds to choose from.

  3. 3 Chris Cartwright January 28, 2009 at 1:57 PM

    So basically what we are doing is just puting a bandaid over the California debts?. I know California is in a whole lot of mess with the forclosures with the homes, and how money is not being well spent on things. It feels as if we as in the citizens are being ripped off becasue of the way our government has been handling things. After we get this chance to try and make our economy better I think California needs to do better with there State funds.

  4. 4 Wiloni Robertson January 28, 2009 at 8:21 PM

    The crisis that California is dealing with is a prime example of poor judgment by a governor who knows nothing of it’s state. He is an infant when it comes to knowledge and structure of how a state should be properly ran. This situation is only making it harder for the less fortunate cause in the due time we’ll be faced with a higher tax rate that would cause us to spend less than we already are.

  5. 5 Robert andre January 28, 2009 at 8:33 PM

    I think that bush screwed our economy over. He made decisions that we all have to deal with while he sits back not having a care in the world. Our schools should NOT suffer from a budget crisis. We are told to go to school go to college then work the rest of our lives until were old. how am i suppose to do that if my school is cutting funding because government officials don’t have a damn care about what happens as long as their pockets stay fat! More Money for schools!!

  6. 6 Khaled Aboudamous January 28, 2009 at 10:24 PM

    The American people are all suffering for the past eight years that took place on this continent. Why? The reasoning behind it is rather simple, all the blame goes on the government because they inquire the most authority in this nation; kind of like a football team. When the team wins the coach is rewarded for his honorary leadership in getting the team where they need to be, on the contrary he is the one to blame for if the team doesn’t meet the position they strive in hopes for, a lot like our government. In the past eight years our president was the coach and we where under his power, unfortunately he failed exceedingly and now we have to clean up all of the past.

  7. 7 Ricardo Olmos January 29, 2009 at 8:30 AM

    California should start looking for better sources of revenue aside from sales-tax. Lending money to the state just digs us deeper into debt. This scares residents because they see the forclusures taking place across the state. Also the unemployment rate is increasing as large companies close or make significant layoffs.I feel the need for professional economist to come to the captial to disscuss realistic options to avoid bankrupcy.

  8. 8 Michael Huddleston January 29, 2009 at 8:51 AM

    If I am understanding the reading correctly, it isn’t neccessarily so much Bush’s fault as much as it is his team of advisers and the state and US Treasury for not addressing the situation more appropriately in the beginning stages of our economic decline. Afterall, it is their “reports” that influence the presidents decisions.

  9. 9 BeuWolf January 29, 2009 at 8:55 AM

    The defict continues to grow, almost like a sink whole. The states budget needs to be regulated and monitered, making sure that all the taxes and funds(bonds), whatever they want to call them are spent correctly. Politions have a habbit of saying one thing, then saying another x-months later, and asking for more money from mishandling funds. California residents, correct me if i’m wrong, pay the highest taxes, asides from NY, in the nation, but our defict continues. Where’s the money going? I have a couple of idea’s that might work, but it would be a thorn in many sides. First, freeze all salary state politions raises until the defict is closed. It makes no sense to give out or give ones self a raise when there is a huge problem with the states budget, your just adding to the problem. Second, with all these big oil companys racking in all these record breaking profits, raise the tax on them. These company’s have been taking advatange of the situtaion of raises energy costs on the consumers and having friends in the previous administration. End the buddy system, no more tax cutes for big corpurations, its time for them to pay up.

  10. 10 Wosmotheneero February 9, 2009 at 6:52 PM

    Hi, cool site, good writing šŸ˜‰

  11. 11 Noe Pate February 17, 2009 at 3:52 PM

    In response to Beuwolf, well instead of looking at the budget in terms of 100% of tax revenues going to the state budget remember that 40% of California’s budget must go directly to education. So what are they doing with that 60%? Not sure but I think mismanagement is one reason. I’m not sure that taxing the oil companies will help they’ll just raise their prices and have an excuse this time. That will inflate the way we do business and send more people hiding their money under the mattress as the cost of food and everything else goes up, we all remeber summer yeah?

  12. 12 nancy moussa March 8, 2009 at 3:42 PM

    We defenitly need to come up with a good plan inorder to avoid bankrupcy. Everyone is scared for our budget right now. In the past our leaders have made poor decesions, and know we are literally paying for it out of our pockets through taxes.

  13. 13 Kevin Clark st marys May 16, 2009 at 2:13 PM

    This is another tricky issue to deal with for our always struggling government. We keep borrowing and printing more money that we never EVER EVER be paid back! Not by the state, not by the nation, not by the FED no one will be able to pay the 12 trillion dollars of debt the nation is in as well as the astronomical amount CA itself owes….is it in the trillions yet?? CA is at least 100 billion in debt themselves and plans on raising sales tax to 8.75% which is already in effect. Will this increase in the percentage of sales tax make up the gap we have created between ourselves and the feeling of being debt free. GOOD LUCK to us all.

  1. 1 Credit Crunch » California Spiraling towards Bankruptcy: Downgraded yet again! Trackback on January 28, 2009 at 11:41 AM

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