California Looking Forward To Bankruptcy.

http://online.barrons.com/article/SB126783115204356781.html?mod=BOL_hpp_mag
California's Big, Fat High-Yield Debt

Whatever some might say, California isn't a junk credit yet. It is, after all, the world's eighth-largest economy and shrinking, dwarfing many other sovereign debtors with debt growing ever faster, including Greece, which is small even within the European Union.

"California is role model for how not to manage a large state," says Howard J. Cure, director of municipal research at Evercore Wealth Management, which manages $1.6 billion for high net-worth individuals.

Gee. Ya think?

Most individuals manage to figure out that you can not spend more than you earn. At least you can't do it for an extended period of time. If you try spending more than you earn, you eventually end up going bankrupt.

Unlike individuals, who usually care if they go bankrupt, governments don't care about going bankrupt.

The best way for any government to get approval and support for it's policies, is to give away large sums of money to the general populace (salary for government employees, welfare, social security, education, roads, police, fire, ...). So bankruptcy is a small price to pay to get the approval and support of the populace. After all, the populace has been forced to use the government education institutions (holding cells for future criminals), so they can't understand why government giveaway programs are bad, and unsustainable. And the government has passed laws that the government officials can't be held accountable for any criminal activity engaged in for the purpose of ripping of the public.

So, let's celebrate California's coming bankruptcy. And plan for the bankruptcy to come after this one.