Not Even Tin Plated

About a year and a half ago, I told a friend California was on the verge of imploding. The mortgage crisis was heating up, the state was broke and getting deeper into debt, (and unlike the federal government, the state cannot remain in debt at the start of the fiscal year), the infrastructure was falling apart, (highways had more potholes than the moon has craters), and the public education system had fallen from one of the best in country to one of the worst.

I hate it when I'm right about these things.

The cuts being proposed to balance the budget are draconian at best. Most state parks will be closed, public education will be cut drastically, already several school districts have cut out their music programs and are considering dropping their sports programs. Assistance to the disabled will be reduced considerably. State employees are facing 14% pay cuts, thus emphasizing the servant part of civil service. Meanwhile cities are laying off firefighters and police because they can no longer afford to pay all of them. The state is rapidly turning into a third world country.

Meanwhile many are in a state of denial. The state Air Resources Control Board recently announced a program to reduce greenhouse gases that if implemented would destroy what's left of the state's economy. The cities of San Jose and San Francisco trumpeted the spending of millions for charging stations for plug in hybrids, ignoring the little fact that these cars are very expensive and rare.

There is a lot of blame to spread around, but basically the state overspent for years while tax revenue couldn't keep up. Prop 13 from 30 years ago guaranteed property taxes would one day be inadequate because the tax rate was set artificially low. Meanwhile the hyperinflated housing market could not be sustained, resulting in massive foreclosures as people who fell for criminally low introductory interest rates fell behind on payments when those rates adjusted upwards.

As an aside, I believe the only mortgage that should be offered is 30 year fixed rate. If you can afford it, go for it, if not, rent.

So the day of financial reckoning has finally come. It's sad seeing the state that was my home for 45 years collapse like this, and I feel for family and friends who are still there.

However, my decision to move to Texas is becoming more and more one of the best decisions of my life.