California Bucked Trend, Voted For Democrats – And Now Will Get A Facefull Of Hell

California is in a total meltdown.  But don’t worry.  The state elected a governor formerly known as “Moonbeam” to face reality so the residents wouldn’t have to.  It re-elected the most ideological witch (I’m sorry, SENATOR Witch – she worked so darned hard for that title) in the entire US Senate.  And it actually ADDED to the number of Democrats who already had total control of the state.  Oh, and it passed a proposition that will give Democrats even more total control by making the Republican minority totally irrelevant in the budget process.

Which is another way of staying, it’s time for all the rats to jump overboard and start paddling furiously.  Because the Good Ship Lollipop is about to take a trip to Davy Jones’ Locker.  And she aint no submarine:

Panic in the California Municipal Bonds
November 17th, 2010 1:30 pm MT

There is a fund called the PIMCO California Municipal Income Fund II symbol PCK on the New York stock exchange.

In the last few days the fund has been going vertical down.  Investors can’t get rid of this turkey fast enough. (SEE PICTURE TOP LEFT-DOUBLE CLICK ON CHART TO ENLARGE).

“It might be argued that muni markets are merely reflecting similar declines in Treasuries (TLT). Fair enough. Bond holders, though, are probably are more interested in the fact that their bonds have declined rather than why.

Warren Buffett warned back in June on the muni bond market as local and state municipalities struggle to meet their obligations amid declining tax revenues.

There was a time — before the 2008 crash — when triple AAA rated, insured munis were seen as the safest of safe investments. Times have changed though. Only Assured Guarantee (AGO) still insures municipals, but the company has been recently downgraded from AAA to AA. Ambac (ABK) is in bankruptcy. MBIA (MBI) is entangled in litigation and no longer writes new policies. The financial guarantee business today is but a shadow of its past.

Even though defaults, so far, are rare, the Fed’s zero interest rate policy has thrown a cloud of uncertainty over all bond markets. One can’t help but wonder what happens when ZIRP is withdrawn. Declining tax revenues, rating downgrades, loss of insurance and rumors of bailouts all contribute to the uncertainity and suspicion.

It may be wise to lighten up on all medium to long term bonds at this juncture. Greece, Ireland and Portugal may not be as far removed from New York, Illinois, and California as we might wish.” More…

You have got to love the above quote especially when it says that this precipitous drop is no cause for alarm but at the same time it might be a good idea to lighten up. We prefer to say that there is panic in the California bond markets.

Basically what investors are saying is that they want more interest from these bonds because they are not paying enough. When bonds go down interest on the bond goes up. The problem is that California has no money. The more it raises taxes, the worse the economy does and the less revenue there is. Where is the money going to come from to pay more interest?

The answer is that it will not come from anywhere. The bond market knows this and is getting rid of this investment in search of better performance. It could also be argued that the bond market is also giving the newly elected government Jerry Brown and his union supporters a vote of no confidence. The bond markets know that Brown and Company  will not be able to find the money to pay higher bond yields and therefore the value of the bond is greatly diminished.

At least 80% of states are in this mess and Arizona is no exception. Just yesterday a Hispanic man on Access, Arizona’s welfare healthcare system. was denied a liver transplant because the Obamacare health care reform has heaped an extra $1.2 billion shortfall on the state. There was outrage that this man was not able to get his liver. What does this have to do a a collapsing bond market? People still just expect government to pay and pay and pay and that money is unlimited. This collapse of the bond market signals very clearly that the party is over and the money has dried up even though many people expect differently.

Arizona just does not have the means to pay its existing overhead or to raise money through the bond market. The more states raise taxes the less tax revenue comes in because our economy is shrinking. Arizona’s plight is no different than California’s and the illustration of the PCK bond fund collapse reflects clearly that the markets are signaling they have no faith in the states’ abilities to pay their bills.

Someone is probably going to say, “But Arnold Schwarzenegger was a Republican!”

Because everyone knows that a guy who is pro-gay marriage, pro-abortion, pro-embryonic stem cell research, pro-global warming alarmist, pro-radical environmental agenda, pro-illegal immigrant, pro-bailout, and pro-Obama-stimulus, is clearly a “Republican.”

And California decided to teach RINO pseudo-Republicans a lesson by deciding to pass on the successful billionaire chief executive officer of the incredibly successful company and elect Moonbeam instead!!!  Because I don’t want to look at the hand I just pooped in; I want to look at all the wishes in my other hand instead.

California is facing a MASSIVE $25.4 BILLION deficit.  And unlike Barry Hussein, Governor Moonbeam can’t just print more increasingly worthless dollars.

If that isn’t insane enough, California is facing its black hole of debt by digging faster than ever.  As we speak, California is borrowing $40 million PER DAY 24/7 from the federal government (which can print money and devalue the dollar further and further) to pay for jobless benefits.

Because California’s unemployment rate is 12.4%, and, after two years of bennies, liberals have decided that unemployed workers should get a lifetime of unemployment benefits so they never need to worry about finding a job.

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7 Responses to “California Bucked Trend, Voted For Democrats – And Now Will Get A Facefull Of Hell”

  1. Martina Says:

    I want to say thank you very much for the job you have made in writing this blog post. I am hoping the same most reliable work by you later on also.

  2. Bob Smith Says:

    The Wetback Song (AKA, our new national anthem)

    Aye, aye, aye, aye….I am the wetback bandito, yeha,
    I steal all your money, I steal it I do….I steal all your money so you are just screwed!

    Aye, aye, aye, aye….I am the wetback bandito, yeha,
    I get food stamps and medical, I get them I do…., I steal your tax dollars and I say “[Profanity edited] You”!

    Aye, aye, aye, aye….I am the wetback bandito, yeha,
    I get money without taxes I get it I do, you can kiss our brown asses you HAVEN’T GOT A CLUE!

    Aye, aye, aye, aye….WE ARE the wetback banditos, yeha, we’re taking your country it’s sad but it’s true, we’re taking your country and THERE’S NOTHING YOU CAN DO!!!!!!

  3. Michael Eden Says:

    I contemplated not allowing this comment, due to the obvious racial element. But it gives me the opportunity to present my own view on the subject.

    For the record, I do NOT blame Mexican or Central American Hispanics from coming to America – legally or otherwise. If I were a man who could not get a decent job in my country, I would come to America too.

    And I frankly don’t care what color a person’s skin is. If you’re a decent, hard-working person who wants to make the United States of America a better nation, then God bless you: red or yellow, black or white.

    Who do I blame? I blame the bureaucrats and politicians who have done nothing while 20 million people have swamped our country by illegally entering the U.S. I don’t blame the illegals themselves; I blame the people who are doing nothing to keep them out, to keep America AMERICAN and FOR Americans.

    All the crap about “fairness” and “what’s right” etc. is a load of crap from liberals. If the Hispanics overwhelming our country and our social support system voted Republican, liberals would be screaming about keeping them out louder than anybody.

    As it is, Democrats are largely willing to undermine America if doing so will get them more votes and give them more power.

  4. Bob Smith Says:

    You misunderstand, there are good and bad in all races. I’ve known many immigrants who came to the U.S. LEGALLY, learned to speak fluent English, worked hard, paid taxes and WERE NOT a blight on society.

    These people are breaking the law just by crossing the border, plain and simple. If I speed, drink and drive, don’t wear my seatbelt, I pay the price for it because I BROKE THE LAW! Why is it so hard to understand that these people are criminals, regardless of how bad things are in Mexico. If they don’t like their situation, stand up, take action and change things, don’t flood our borders.

    I’m literally dying because I DO NOT have, nor can I afford health care. No, in the government’s infinite wisdom, I DO NOT qualify for Social Security, Medicare, Medicaid or any other state or federal programs. My wife and I slip through the cracks. The Judge who decided my SS case actually said “I’m sorry, but being terminally ill doesn’t qualify you for disability”.

    We could have universal health care for the LEGAL U.S. CITIZENS if it weren’t for all the money and benefits going to illegal immigrants. Social Security, Medicare, Medicaid, welfare, free schools and colleges, food stamps, legal services, free housing and the list goes on and on. I DO NOT qualify for any of these services and I was born and raised here LEGALLY! Tell me that’s not screwed up.

    I’m actually glad my days are numbered as I can’t tolerate the steady downhill slide of MY country anymore. I’ll just try to remember 30 years ago when THIS WAS STILL A GREAT COUNTRY TO BE PROUD OF! The drugs, the stealing, the murdering, the raping, the anchor babies, the bilingual packaging, the constant muttering in Spanish, THE TOLL IN TAXES BEING PAID BY HONEST, LEGITIMATE CITIZENS, and much more. I’m fed up with ALL of it.

    One day soon, they WILL BE the majority in the once great U.S., they’re well on their way. However, once all the hard working, tax paying, legal citizens have all either died or been pushed out of their homes by drugs and violence, WHO’S GOING TO BE LEFT TO FOOT THE BILL FOR ALL THE GIVEAWAY PROGRAMS THE ILLEGAL’S GET NOW? I’d love to see that day and I’d have a HUGE smile on my face when the gravy train runs out :)

  5. Michael Eden Says:

    I’m glad you came back and cleared up your views, Bob.

    I did NOT call you a racist; I merely pointed out the “ditty” had a racial element. It’s kind of like ethnic jokes; telling them doesn’t make one a racist; but at the same time some people feel uncomfortable.

    Which is why I don’t tell ethnic jokes any more.

    Years back I knew a judge who constantly told Polish jokes. You might think the man really loathed “Polacks.” But his name was Aleksy SOKOŁOWSKI. And if you knew him, you knew he was actually quite proud of his heritage.

    My approach is this: I’m going to take the strong, principled stand – which means I’m going to be called a racist morning, noon and night by the race-fixated racist left.

    But I’m not going to make it easy for them.

    The Israeli who oversaw El Al Airline says American security is a joke because of political correctness. Our immigration policy is the same way. The left is stupid and evil – and we are being governed by the policies and worldview of moral idiots.

    I stick with that stuff.

  6. Bob Smith Says:

    I just think people have become oversensitive with all this PC crap. I make as much fun of myself (or more) than any other group of people. I’m fat, bald, old and half blind, but I don’t sit around whining about it and the jobs I’ve lost due to affirmative action quotas. I think everyone should be treated equally, like when my ancestors came through at Ellis Island LEGALLY!

    I know certain races were treated badly back in the 60’s and earlier, yet how long to we have to pay the price for it now that the tables are COMPLETELY turned? Could I have the Caucasian Education fund? Could I have WET or White Entertainment Television? Why can’t I watch a channel that’s dedicated 100% to English speaking people, like Telemundo is for the Latinos and Hispanics?

    First there were Colored people. Then they wanted to be called Negroes. Next, they wanted to be called Blacks. Now, it’s African Americans. For God’s sake, make up your minds and stick with it! I might not want to be referred to as White or Caucasian, but no one is going to call me a European American. Isn’t this the United States where everyone is SUPPOSED to be proud to simply be an American?

    I get called cracker, honky, white bread, white trash and every other name imaginable, yet no one stands up for me. If immigrants are here and proud to be in America, then play by the same set of rules the legal citizens have to live with. Enough with disgracing OUR sacred flag by burning it, flying it UNDER the Mexican flag, flying it turned upside down (which is an insult to our flag and the people who fought and died for this country) and much more. If you want to keep your customs, refuse to speak English and HATE America so much, then why come here? To get a FREE ticket and leech off the taxpayers, that’s why!

    This IS America, Love it or gladly LEAVE IT!

  7. Michael Eden Says:


    Agree with every single word (and think I agreed with every word of your last post as well).

    When we can have a Congressional White Caucus, when we can have the United Caucasian College Fund, when white people who march for white rights be treated with such esteem that even criminals among them (a la Charlie Rangel who committed 11 felonies but was defended on racial grounds because he marched at Selma) be let off the hook, that will be the day.

    What you don’t have to worry about ever seeing is when liberal blacks STOP hypocritically maintaining a massive double standard. Liberalism is the quintessential essence of hypocrisy; their souls swim in it. If liberals stopped being hypocrites, they’d have to stop being liberals. And they won’t have that.

    I refuse to hyphenate anybody. The ONLY people I hyphenate is American Indians. And that is ONLY because we have to distinguish “Native” American Indians from Indians from India.

    My view is that I know I’m going to get called a racist anyway; it’s how these slimeballs operate. And, knowing that, I try to keep my stuff focused on the policy, rather than saying/writing stuff that makes it easy for race-baiters to attack me even more gratuitously than they already do.

    If I say that we should end affirmative action because promoting blacks because they’re black guarantees race problems for decades to come, go ahead and call me a racist for saying we should treat all people the same regardless of color. But if I tell jokes mocking people because of their color, it’s easier to make the “racist” charge stick.

    And I want to stick it to THEM; not get stuck by them.

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