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California Uber Alles - States in Trouble

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California Uber Alles - States in Trouble
Will California go Beyond Financial Crash (BFC)?
================================

 

Late 2016 Update:

CCA / MFS California Municipal Fund (NYSE MKT) ... update / Last: $11.36

CCA_zpsz7kgdxzm.gif

 

MYC / BlackRock MuniYield California Fund Inc. (NYSE) ... update / Last: $15.38

MYC-MuniDebt-CA_zps5anxjfas.gif

/ 2 /

TRACK the Fears of CA Default - with this chart

 

CCA (Calif. Fund) versus TLT (Bonds) and IYR (Real Estate) ... update

CCA-etc_zpsrkwdsj70.gif

 

In 2008, there were two moves to the 'safe haven' of Bonds where we saw TLT rise, as CCA and IYR fell.

Followed by:

+ A narrowing of the Gap.

But some of the gap never filled, as if there was a permanent impairment of risk in those instruments.

 

Since late 2009,all three prices have tended to move in the same pattern.

And the recent drop in CCA was accompanied by a drop in TLT.

If /when CCA is falling on its own, it will be a sign that fears of a California default are spreading

=====================================
/more Google News : California in Crisis

QUOTE
Oct. 3 (Bloomberg) -- U.S. states and municipalities from New York to California are facing deteriorating finances as investors shun their bonds in a credit market averse to all but the safest debt and a slowing economy erodes revenue.

New York Governor David Paterson called for a special legislative session to confront a budget deficit that has ballooned to $1.2 billion and Massachusetts Governor Deval Patrick ordered spending cuts as states and cities from Louisiana to Illinois canceled debt sales.

Tax-exempt borrowers this week sold less than 15 percent of a typical week's sales, data compiled by Bloomberg show, and their costs to borrow long term soared to the highest in eight years. Congress passed a $700 billion financial-market rescue plan today designed to unlock credit markets, urged on by California Governor Arnold Schwarzenegger's warning that his and other states may need emergency loans without it.

States and cities have postponed more than $12 billion in note and bond deals since Lehman Brothers Holdings Inc. declared bankruptcy on Sept. 15, according to data compiled by Bloomberg. California may run out of cash at the end of the month if the state can't sell billions in short-term debt, Treasurer Bill Lockyer, a Democrat, said Oct. 1.

http://www.bloomberg.com/apps/news?pid=new...id=afZRKK9qsBHI


QUOTE
California Governor Arnold Schwarzenegger told the Bush administration yesterday that his state may need an emergency loan of as much as $7 billion from the federal government within weeks if it can't tap the credit market, the Los Angeles Times reported. The warning comes after state Treasurer Bill Lockyer earlier this week said California may run out of cash at month- end if it is unable to sell billions in short-term debt.

http://www.bloomberg.com/apps/news?pid=new...id=ag2wzlV3psYs

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Kali-fornia Uber Alles 21st Century :

I am Governor Schwarzenneger

Pretty soon I'll be dictator

When they make me President.

Democracy is going away

Hasta la vista, Baby!

I will command all of you

Kindergarten Cop in every school

Or i will Terminate you!

 

Kali-fornia uber alles

Kali-fornia uber alles

Uber alles Kali-fornia

Uber alles Kali-fornia

 

http://www.lyricsmania.com/lyrics/jello_bi...ics_585046.html

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(CNSNews.com) – House Speaker Nancy Pelosi told CNSNews.com that she is “uncertain” about whether the federal government should bailout California.

 

Pelosi said she hadn’t read California Gov. Arnold Schwarzenegger’s emergency request to the Treasury Department asking for $7 billion in federal loans, even though the letter had been forwarded to her office.

 

“I haven’t read it. It’s been delivered to my office. I haven’t made a statement yet,” Pelosi said Friday at the Capitol. The speaker added: “Let’s just take a look at the highly unusual request that was made. I do know that all the states do have tremendous needs, but I’m not going to comment on something I haven’t read yet.”

 

But House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) told CNSNews.com that California wouldn’t be getting any money without going through Congress.

 

“There is no way that the federal government can give away taxpayer’s money without coming to the Congress,” he said. “No way.”

 

Rangel said that this was another example of Republican politicians begging for a bailout.

 

“It’s really difficult for me to understand (how) Republicans, who want to keep big government out of the private sector, find it so easy to ask us for $700 billion to get involved in the private sector and now comes California with a well-known Republican asking to be bailed out,” Rangel said.

 

Schwarzenegger asked the Treasury Department for a $7 billion bailout Thursday, according to The Los Angeles Times. The money is needed, the governor said, to avoid having to shut down state operations because the state fund is empty until sales and tax revenues can be collected.

 

Under normal circumstances, California would seek short-term loans from private banks, but due to the current credit freeze, no loans are available to the state. This lack of credit availability has forced California to seek federal help.

 

The request, meanwhile, was met with mixed reaction from others on Capitol Hill.

 

Rep. Ron Paul (R-Texas), a former GOP candidate for president, expressed contempt for the idea of bailing out a state.

 

“It’s insane, if we continue to do that,” Paul told CNSNews.com. “But that’s what’s going to happen. Everybody’s going to get bailed out. Everybody’s too big to fail.”

 

The congressman said that Schwarzenegger’s request was just the beginning – other states will follow.

 

“Would they let California go bankrupt? No way. Everybody’s going to get bailed out,” Paul said. “We’re on the verge of something very, very serious, a lot more serious than they think it is to have a credit crunch.”

 

Rep. Jim Moran (D-Va.), meanwhile, who agreed a California bailout would be “a dangerous precedent,” told CNSNews.com he didn’t think the Congress would take the issue up anytime soon.

 

“I don’t think Congress will take anything up until we know who our president is,” Moran said.

 

http://www.cnsnews.com/public/content/arti...px?RsrcID=36895

 

And do you remember this and the issue on which the Terminator got elected?

 

Friday, 25 July, 2003, 06:18 GMT 07:18 UK

 

California's debt 'nearly junk'

 

The California's state debt has been downgraded to two points above junk status by US credit ratings agency Standard & Poor's (S&P).

 

S&P slashed its rating on California's $27bn of debts as Republicans succeeded in forcing a vote on 7 October on whether Democrat governor Gray Davis should keep his job.

 

California, the richest state in the US, faces economic turmoil unless it can pass a state budget.

 

S&P managing director Steve Zimmerman said: "This recall election just makes it more difficult to focus on the job in hand."

 

Budget crisis

 

"Today's S&P downgrade is our latest and loudest wake-up call," Governor Davis said, urging lawmakers to "pass a budget and pass it quickly".

 

http://news.bbc.co.uk/1/hi/business/3095011.stm

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It warms my heart that there are others of the same ilk out there.. :P

 

The DK's have a range of songs that may be applicable to what's coming.

 

California Uber Alles

 

Kill the Poor

 

When Ya Get Drafted

 

Let's Lynch the Landlord

 

Maybe it is bedtime for democracy.

 

 

 

 

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California update.

 

WASHINGTON, Oct 7 (Reuters) - The Bush administration will respond soon to a letter from California Gov. Arnold Schwarzenegger that said his state could need the federal government to buy $7 billion in notes because of a frozen municipal debt market, a White House official said on Tuesday.

 

"There was a letter from Governor Schwarzenegger to the administration asking for a $7 billion loan and that is being discussed," White House economic adviser Edward Lazear said in a speech to the National Association of Business Economists.

 

"I obviously can't reveal what's going to be said in the letter back to the governor, but that will happen ... probably today or tomorrow. So we'll have some information for you there," Lazear said, in response to a question.

 

http://uk.reuters.com/article/marketsNewsU...07?rpc=401&

 

And the reason for the mess.

 

NA-AS985_SALVAG_NS_20081006184015.gif

 

Parts of Southern California hit hard by the housing crisis are maneuvering to shape the Treasury Department's plan to buy up troubled assets so that it doesn't wind up causing a second wave of pain in their communities.

 

http://online.wsj.com/article/SB122334317101810201.html

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Governor Arnold Schwarzenegger approved $7 billion in cuts in October to help fill a $15.2 billion crater in California's budget, leveling a broad attack on unions and working people as the world's tenth-largest economy teeters.

 

Unemployment in California rose to 7.7 percent in August, its highest in a decade. Many of the new jobless are temporary state workers, 10,000 of whom were laid off this summer. "Working in the public sector is increasingly an emotionally difficult place to work," said Dave Hart, president of the California State Employees Association, representing over 140,000 state workers. "You're now at the whim of politics."

 

Service Employees Local 1000 has won contract language protecting some temporary workers who work full-time hours. Those without permanent status, including retirees doing part-time work, were laid off. "A lot of these retirees had dwindling pensions, and were coming back to work to make ends meet," said Cathy Hackett, an SEIU bargaining representative.

 

The deep cuts have put at least one state agency in a good position to bargain for exemptions. "The people in the unemployment insurance office are putting in overtime," Hackett said. "They cannot keep up with the claims."

 

http://www.alternet.org/workplace/106554/f...cks_california/

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Bay Area House Price Plummet 41%

 

not good for tax receipts going forward

 

 

anyone seen BayAreaBear

LOS ANGELES (AP) -- Despite an increasingly uncertain economy, thousands of homebuyers around San Francisco Bay kept snatching up foreclosed homes last month, dragging down the median home price by 41 percent from a year ago, a real estate tracking firm said Thursday.

 

The median home price in the nine-county region plunged to $375,000 in October, compared with $631,000 in the year-ago period, according to San Diego-based MDA DataQuick.

 

Last month's median price was down 6.3 percent from September and nearly 44 percent from the peak median of $665,000 in the summer of 2007.

 

"The dramatic, near free-fall in the Bay Area's median sale price in recent months stems mainly from the shift toward more sales occurring in lower-cost inland markets," John Walsh, MDA DataQuick's president, said in a statement. "At the same time, the role of foreclosures continued to grow across the region, adding more downward pressure to the median."

 

Despite efforts by government, lenders and others to help strapped homeowners with mortgage payments, foreclosures have continued to rise in California, particularly in inland counties with metro areas such as Stockton, Merced, Riverside, San Bernardino and Modesto

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A Sea of Unwanted Imports

 

LONG BEACH, Calif. — Gleaming new Mercedes cars roll one by one out of a huge container ship here and onto a pier. Ordinarily the cars would be loaded on trucks within hours, destined for dealerships around the country. But these are not ordinary times.

 

19ports_600.JPG

 

For now, the port itself is the destination. Unwelcome by dealers and buyers, thousands of cars worth tens of millions of dollars are being warehoused on increasingly crowded port property.

 

And for the first time, Mercedes-Benz, Toyota, and Nissan have each asked to lease space from the port for these orphan vehicles. They are turning dozens of acres of the nation’s second-largest container port into a parking lot, creating a vivid picture of a paralyzed auto business and an economy in peril.

 

“This is one way to look at the economy,” Art Wong, a spokesman for the port, said of the cars. “And it scares you to death.”

 

The backlog at the port is just part of a broader rise in the nation’s inventories, which were up 5.5 percent in September from a year earlier, according to the Commerce Department

. . .

But the inventory glut in Long Beach is not limited to imported cars. There has also been a sharp drop in demand for the port’s single largest export: recycled cardboard and paper products.

 

This material typically goes to China, where it is used to make boxes for new electronics and other products that are sent back to the United States. But Chinese factories reacting to sharply falling demand are slowing production, so they need less cardboard. Tons of paper are piling up recycling businesses around the port, the detritus of economies on hold.

 

Long Beach is an important port, particularly for the West. It is where imported products arrive and filter through the tributary of trucks, trains and retailers into the hands of consumers. But now, products are just sitting.

 

“We’re supposed to move things, not store them,” Mr. Wong said.

. . .

In the 150-acre terminal where Toyotas are unloaded, there is a sea of Corollas, Camrys and RAV4s. The mere presence of so many cars is not unusual, given that Toyota brings in 250,000 cars a year in biweekly shipments. But in a sign that something is amiss, dozens of tractor-trailers that transport new cars to dealers sat empty last week amid the rows of Toyotas.

 

Kurt Golledge, 48, was one of just two truckers loading his green, 75-foot-long hauler with cars last week. Mr. Golledge said eight of his colleagues were laid off this month because Toyota dealers did not want more deliveries.

 

“I was dropping cars in Henderson, Nev., about a month ago and the dealer told me: ‘Take ’em somewhere else and dump ’em,’ ” said Mr. Golledge, who works for a company called Allied Systems. “All the dealers are telling us the same thing.”

. . .

“A year ago, I was looking into buying one of these for my wife,” said Kurt Garland, the terminal manager overseeing the unloading of the white, silver and black sports cars, sport utility vehicles and sedans. “Now I’m not. I’m saving money, paying bills, hunkering down.”

 

Not far away, metal, cardboard, paper and plastic are piling up in the lot of Corridor Recycling. The company takes in refuse from around the country, then bales it for shipment to China. The cardboard is used to make new boxes while used shrink wrap is turned into shoe soles and insulation for sleeping bags and coats.

 

For much of this year, the company shipped about 25 containers a day, each filled with 23 tons of refuse to be recycled. But after the Olympics, demand slowed for recycled metal. In October, demand for everything else took a sharp downturn, and for the last two weeks the company has not shipped a single container

 

 

/see http://www.nytimes.com/2008/11/19/business...tml?_r=1&em

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“We’re supposed to move things, not store them,” Mr. Wong said.

 

And this is why prices for many things will probably continue to fall.

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California controller to suspend tax refunds, welfare checks

 

http://www.latimes.com/news/local/la-me-bu...0,4472460.story

 

"State Controller John Chiang announced today that his office would suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, as a result of the state's cash crisis.

 

Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state's nearly $42-billion budget deficit. More than half of those payments are tax refunds.

 

The controller said the suspended payments could be rolled into IOUs if California still lacked sufficient cash to pay its bills come March or April."

 

 

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California controller to suspend tax refunds, welfare checks

 

http://www.latimes.com/news/local/la-me-bu...0,4472460.story

 

"State Controller John Chiang announced today that his office would suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, as a result of the state's cash crisis.

 

Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state's nearly $42-billion budget deficit. More than half of those payments are tax refunds.

 

The controller said the suspended payments could be rolled into IOUs if California still lacked sufficient cash to pay its bills come March or April."

yep frightening isnt it

 

cant see the Union surviving this mess without a lot of unrest unfortunately

 

 

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http://www.telegraph.co.uk/news/newstopics...fornia-law.html

 

British celebrities' assets seized under draconian California law

 

The state of California has used a draconian law to seize millions of pounds worth of assets belonging to Britons including some of the biggest names in showbusiness.

 

Celebrities including Kate Winslett, Dame Helen Mirren, Clive Owen, Sir Michael Caine and the Irish actor Colin Farrell have all fallen victim to legislation that allows California's state government to take possession of bank accounts, stocks and the contents of security deposit boxes if they are dormant for longer than three years

...

Mr Palmer claims that California has failed in its obligation to make "reasonable" attempts to contact the owners of assets before state appropriation takes place. It is alleged that even easily traceable addresses, like that of the Her Majesty's Stationery Office, which is owed a princely $108 (£75), had not been notified of the three-year rule.

...

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Can you find the former "hotspots"?

NA-AS985_SALVAG_NS_20081006184015.gif

 

April’s ‘Record’ Foreclosure Numbers: Grounds for Horror or for Hmmmmmm?

 

In real estate, the news of the week (so far) was that foreclosure “activity” was at a record high in April, with one of every 374 American households receiving a foreclosure notice last month. Maybe I’ve just seen so many of these sorts of headlines that it’s tough for me to get super worked up about them. Or maybe I know enough from working with homeowners and their lenders every day that I can see past the headlines and into the other market and mental factors that might be inflating these numbers. Either way, my first thought when I read the RealtyTrac press release announcing the April foreclosure numbers was not horror, like many observers, but rather – hmmmm, let’s dig a little deeper and see what this is all about. In my world, horror is related to fear, panic and paralysis, so dissecting the data to understand it holds the power to calm and empower. I choose dissecting.

 

First, there’s lots of hyperbole here, so let’s cut through that first. By foreclosure “activity” RealtyTrac means foreclosure filings – primarily, filings of Notices of Default, the first public notice a lender makes when a homeowner is (in most states) 90 days behind on their mortgage. I’ve never seen good studies for how many properties have a NOD filed, but are later rescued from foreclosure, but in my own office and experience I’d say it’s a lot. Well over 80 percent of the homeowners in my clientele are able to either reinstate their loans by catching up on back payments or, more commonly, received a foreclosure-preventing loan modification from their lender(s). Long story short – the fact that an NOD is filed on a home does not equal that the home will be lost to foreclosure.

 

Beyond the hyperbole, there’s lots of interesting factors at work here that are making these numbers seem abnormally high. First, the fact that these numbers are a record high should be more fully explicated: they are a record high for the four years that RealtyTrac has been keeping records. Enough said.

 

Second, a good number of lenders and governmental entities had imposed moratoria on foreclosures, many of which expired in April. So, there are untold thousands of homeowners who really should have received a foreclosure notice in January, February or March, but didn’t. The lenders are only now able to file those notices, so what should have been more of a trickle now seems like an avalanche.

 

/see: http://teamwashington.blogs.foxnews.com/20...or-for-hmmmmmm/

 

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