San Diego City and the State of California are in Real Bad Shape
San Diego California
Well, if you are a regular reader of this blog you know what a hit our housing market has taken. But, do you also know how bad San Diego’s finances really are?
Professors say that state pension fund as presently set up have only a 1 in 20 chance of paying their obligations 15 years from now, according to Barron’s.
California Leading The Way In Budget Shortfalls
California real estate
44 states are facing budget shortfalls. California is leading the way as it is expected to spend 50% more than it will generate this year.
Now that is a really scary thought. Since 2007 US states have collectively spent 300 billion more than they have generated. These deficits mean higher taxes and so far 33 states have raised taxes, but collections have plummeted to their worst levels in 46 years; you cannot squeeze water out of a rock. No jobs means no revenues but states are selling new bonds at record rates to raise funds. It’s a recipe for long term disaster.