Saturday, October 22, 2011

‘California and Bust:' The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario

In San Jose, the cost of retirement benefits and contracts with police and fire agencies has been cannibalizing government services for years, and the process is about to sharply accelerate. - San Diego Union-Tribune

In Vallejo, the cost of contracts with police officers and firefighters led to a declaration of bankruptcy in 2008. Now City Hall feels like a ghost town, roads go unpaved and traffic lights are set on permanent flashing mode. Public services are skimpy – with no prospects of a rebound in sight. ...

As Vallejo and San Jose illustrate, a painful new era looms for many local governments. Some will go belly-up. Some will muddle through. It all hinges on the quality of local leadership – starting with leaders who don’t peddle what San Jose’s mayor calls the “delusion” that the status quo is sustainable with some modest tinkering.

...All eyes are on California as the nightmare scenario - Vanity Fair

A Second Term for Obama Would Make the United States Go as California Has Gone - Tom McClintock/Real Clear Politics