California, the most populous U.S. state, is suffering from a spike in unemployment and a sharp slowdown in its economy, which has slashed its revenues and put the state's government at risk of running out of cash within weeks. The state's financial situation is so dire that its Pooled Money Investment Board last month halted $3.8 billion in loans for public works so the state could use the money to pay for vital services.
Bottom line. Several states, like California are in trouble. They gave, gave, and gave to the citizens what they citizens wanted. They were all great ideas. Besides, they make bureaucrats more powerful. Eventually, however, the bubble bursts and the markets win.
It is human nature to reach out and want more ..without limits. We do not seem to know when to stop. Until the house of cards we build collapses...and then we start all over again. There is a sense of inevitability in the history of man.
We close our eyes and hope for the best. But the markets always win. No matter how smart we are with all our think tanks and PhDs, we do not learn to say enough is enough. And we all pay the price.
Some would say leadership is hard to find.
To find out more about my in depth view of the markets and my strategy just visit my website https://www.peterdag.com/. You can review The Peter Dag Portfolio, free of charge of course. You can call me at 1-800-833-2782 to discuss your specific money management needs.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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