Starting in October, about 23 million Californians making less than $250,000 per year will receive a stimulus check ranging from $200 to $1,050, depending on income and the number of dependents.”
I call it wealth redistribution. I also call it the reason why we are having a bear market rally.
Jackula
1 year ago
A nice $100 billion deficit next year might sink Gavin’s presidential aspirations
Agave
1 year ago
I love California. The magnificent and varied landscapes and recreational paradises, the smart, creative, and forward looking people, the opportunities, the culture, the climate, the multi-cultural diversity, the open mindedness, the economic dynamism, the live and let live freedoms.
After about 40 years here, and having lived all over the country before that and traveling widely around the world since, there’s no place I’d rather call home. Just spent a few weeks in Hawaii, always enjoy that, but it’s great to be back home again.
The pile-on comments by flatlanders just make me chuckle as they repeat various contrived rubrics generated from afar. You could have the following dystopia instead, heh heh (At the hartmannreport dot com – If You Want To Die Young – Take the Red Pill – As giddy as Republicans are about “owning the libs,” the citizens they govern pay a tragic price for the sport)
The landscape & climate are indeed gorgeous. The high taxes, whacky social policies, and animosity toward the right to keep & bear arms would make living there impossible for me.
I live in florida. we have significantly higher murder rate than california. more guns equal more easy murder. i want some state to ban guns, and I’ll live there. more guns, = more murder.
FL’s homicide rate is 7.8 per 1000. CA’s is 6.1 per 1000. That’s not exactly a huge difference. Plus, Utah (2.9 per 1000) and Idaho (2.5 per 1000) have relatively relaxed gun laws but have homicide rates WAY lower than either CA or FL.
Unfortunately for you and the rest of us, we don’t have our own federal reserve or statutory authority to raise our debt limit every few years.
Siliconguy
1 year ago
That’s odd, I have heard for years from Barry Ritholtz and others that California’ Hugh budget surpluses prove they had the correct ideas and would lead the rest of the country to nirvana.
Coincidentally not an hour ago on the radio Washington State was proclaiming a huge budget surplus and at least some politicians were hoping for cut in the sales tax.
Captain Ahab
1 year ago
The number of homeless in the US is estimated at ‘552,830’ (Sept 2022). That’s a White House number, hence the accuracy.
Apparently, ‘Fried’ gave $40 million to politicians in 2022, that’s enough to feed the nation’s homeless for a week or more. The total amount lost by Fried could be as much as $16 billion. That’s nearly $29,000 per homeless person. Fried could’ve been a national hero.
KidHorn
1 year ago
They’ll do what every government does. They’ll sell bonds and push the debt problems into the future.
They better do it quickly. Fed rate + California risk premium will likely be 7-8% 🙂
WarpartySerf
1 year ago
Nothing like ruining the most important state in the union in pursuit of absolute woke stupidity ….. I guess those are qualification for Newsom to move on and try to destroy the entire USA . Experience counts the most in politics .
StukiMoi
1 year ago
“Now what?”
Home invasions…. Car jackings in Beverly Hills…. People no longer wearing watches, for fear of having their forearm chopped off…… What else is new in dystopia?
The other night, a man was returning home, to his residence in an upscale building, driving a Rolls Royce. He was robbed and shot as he arrived home.
At the other end of the spectrum, a homelss man was shot to death in Hollywood last night.
conservativeprof
1 year ago
CA never had a surplus because of pension liabilities. The volatility in the stock and bond markets will cause pension liabilities to explode. CA has two government workforces, the current workers and retirees. Pension benefits are worth millions to middle and high end retirees. Many retirees are moving out of state to avoid CA income tax on their benefits. Pension agencies are likely to suffer even more staggering losses than typical investors because pension agencies are investing heavily in private assets. In addition, pension agencies have an arrogance about performance. Pension agencies keep agencies do not segregate sufficient safe assets for current retirees. Instead, pension agencies keep assets invested in risky assets, providing high returns in good times but crashing losses in bad times. Bad times are coming in Democrat run CA.
Six000mileyear
1 year ago
Having a gridlocked Congress the next two years is a sigh of relief when considering Pelosi would have delighted to bail out CA, NY, NJ, and IL.
PreCambrian
1 year ago
I got one of the $1050 checks (actually a transfer to my bank account). I thought that it was a stupid idea. It would have been better to either have a budget surplus to use in a bad year or start to cut the highest marginal tax rates. The highest income earners will move out (and obviously that isn’t me since I got a check). I didn’t really need a check, I am doing without it. California either needs a reasonably fiscal conservative Democrat or a socially liberal Republican as a governor. It helps control the spending.
Extraterrestrial aliens are forming the invasion armada on the dark side of Earth’s moon.
RonJ
1 year ago
“Don’t Call It a Bribe” “The program is expected to cost $10 billion.”
It was supposed to be the alternative to cutting the state gasoline tax. Maybe the state government will try to pay for it by a windfall tax on the oil companies. So far, all bark and no bite, on that idea.
TheCaptain
1 year ago
The eventual solution to too much liberalism is too much liberalism.
Newsom is fixated on “solving” the homeless problem by seemingly giving every homeless person a monthly stipend and a home of their own at low to no cost.
He recently pulled back $1 billion on promised spending for homelessness because action wasn’t occurring to fix the problem fast enough (before the money runs out?), which of course caused all the remoras to have a conniption!
I think Newson is hoping to use “solving” the homeless problem as his main talking point should he run for president.
Last week i was in Hollywood and drove up Cahuenga, which passes under the Hollywood Freeway. Both sidewalks under the bridge, were lined with makeshift tents.
That’s about all you can do for ’em. They have literally no value in our civilization, and I can’t imagine one they would have value in. They used to call it a mental institution, but those became pay only… and I don’t think they work all that well anyway. Better than having them stagger around on the sidewalk.
Friends of Jesus, what would he have us do about them?
There is only so much you can do to solve homelessness. Guess what needs to be discussed is where is that line. Also the more you try to solve the bigger the problem becomes.
Where are all the churches. Isnt this what they are supposed to address.
How much will homelessness increase when the country is in recession? Based on the 2007-9 increase of unsheltered homeless (living on the street, in a car, or abandoned building), the number could rise by as much as 40% in some states.
My daughter’s job just went poof, so she will be moving back home in January. There is one more for your statistic, and she won’t show up on the official stats.
And how many of those ~4M illegal aliens will be able to afford rent? And with Title 42 ending, I’ve read where daily border crossing may surge to 18K a day or 6.57M annually. People, that’s almost twice as many baby boomers retiring each day. That’s insane!
Dean_70
1 year ago
Idiots in CA keep vote to increase spending. I’m in CA and have never voted yes on anything that increases spending. I figured the government has the money but simply cannot manage it so why give them more to mismanage. Just a bunch of typical government employees running the state.
Maybe California isn’t for you. We have 49 other states to choose from! In tenessee, you can even get a license plate that identifies you as a godless heathen, if that’s what you’re into! The USA is your oyster!
8dots
1 year ago
In the 70’s, after Nixon opened China, globalization and high tech employees benefited, but the mid west was comatose. it cost $80K/y to
teach stem students in MIT, Stanford and CMU, but in Ukraine, Russia, China and N.Korea it cost almost nothing. Cyber experts built a bridge to extract wealth from the rich to transfer funds to the poor. The world benefit from cyber globalization in the long run. N.Korea cyber grad built a cyber bridge to extract from Sam Beckham Fried. They informed other players about a big hole in his ledger. The selling started. A whole generation of Gen Z and millennial community were devastated. CA programmers might join Johnstown, Braddock and Youngstown OH. Our gov will build a wall to protect Intel fab in OH
I said that the top secret, the invisible, NK cyber grad school project was to extract Beckham billions and informed other players about a hole in his ledger they themselves created. The selling started. NK 5:0 Beckham. How could that suddenly have happened : our programmers are below par. It takes time to realize it, but our institutions, businesses and gov are under attack and it’s happening almost every day, every year, for a many years For fun and entertainment only.
8dots – “poor” is comparative descriptor, not a noun, right?
Zardoz
1 year ago
In SF, the area between Civic Center and the Mission already needs to be scraped and rebuilt. It’s apocalyptic… like a zombie movie. With the CRE vacancies, that rot is going to spread up market street. Elon’s slave ship building will be the only light.
Those Twitter layoffs sent a big signal to the rest of high tech to take a hard look at their own overstaffing. Sillycon Valley hasn’t seen a downturn for 20 years; lots of wretched excess has built up. A whole lot of people are going to realize, or be made to realize, that they add no economic value. As for S.F., yep, if this is how they run their city at the top, hoo boy just wait. Same for L.A.
Isn’t this what happens with vast amounts of faux debt– yield/required rate of return approaches zero? Risk is miss-priced and sub-optimal investments proliferate.
And these are the low-hanging fruit. Wait until GE, Ford, Citicorp, Intel….. start laying off.
$25B is 12.8% of California’s state tax revs of $195B in FY22, which ended on June 30. That’s a big hole, and it’s going to get deeper as the state’s twin revenue pillars — Hollywood and Silicon Valley (including their finance stubs on Sand Hill Rd. and in San Francisco) — contract at the same time. But take heart! If you’re a trans, S.F. will pay you $1,200/month out of city funds because you are special. LOL
I think I quoted incorrect numbers. California’s FY22 revs were just shy of $230B, so a $25B hole is just shy of 11%. The correct link for fiscal years is July at the link.
“Don’t Call It a Bribe
Starting in October, about 23 million Californians making less than $250,000 per year will receive a stimulus check ranging from $200 to $1,050, depending on income and the number of dependents.”