‘California’s Budget Miracle A Mirage After All’

http://www.zerohedge.com/news/2013-02-19/californias-budget-miracle-mirage-after-all

California democrats are experts at smoke and mirrors.

Goebbles News Networks…

Are we sure that this article wasn’t a parody a la Mad Magazine?

As someone who works in Silicon Valley, I will call BS. Companies are leaving by the droves – and rehiring in other cheaper parts of the country.

Ca97 on February 19, 2013 at 2:59 PM

I’m in SoCal and there are at least 5 small business owners in my personal sphere who have already made the decision to move elsewhere – because the nature of their companies allows them to do so.

Some of us are just stuck, but even some of those are talking about early retirement or other options.

It’s the perfect storm – Jerry Brown, Dem Legislature Super-majority, and 2nd term Obama.

Hunker down folks.

Also, the state’s housing market is no longer the anchor on growth that it was for several years: Prices bottomed out in 2012 and began to rise, construction permits are up, and contractor hiring is accelerating.

As a CA Real Estate professional I can tell you this is BS. Yes, prices were/are up since mid-2012 – but inventory is down (about 60% of “normal”) and interest rates remain at life-time lows. It is an extremely fragile uptick. I believe it is a good time to buy, a good time to sell if you need to and can, but a huge percentage of homeowners remain upside-down and will be for a long time.

California’s budget is nowhere near balanced in reality, only on paper. increased taxes WILL NOT bring in the ‘revenue’ they’ve projected it will for the next decade, housing is not recovering so much as the dollars losing value, 0 down mortgages are back, and CA passed a law a few years ago making it much more difficult for banks to foreclose on houses (which means there are a lot of people in CA living for free in houses they no longer own who will eventually get evicted).

Timin203 on February 19, 2013 at 2:42 PM

Correct. And more taxes are coming with the Dem supermajority, and there’s no sign of anyone hitting the brakes on spending, including the HS Train from Dry Hole to Rock Pile. Unions and special interests own the state and control their little Legislate-whores.

California is doomed.

Yet many economists and some young executives in the state say they don’t worry about that high rate chilling growth.

Oh … these must be the comrade economists and young executives.