Financial Briefing: I come here not to praise California, but to bury it

That sound you just heard was the State of California irretrievably flushing itself down the toilet.

This is financial news for several reasons, and it's really the only financial story that matters today.

California's most dire problems right now are related to public-employee obligations (pensions and healthcare). The power of public-employee unions in California have held the State and local governments in thrall for years, and with the election of Jerry Brown as Governor, the people of California have opted to spray kerosene on a blaze that was already threatening to overwhelm them.

Consider stories like this or this -- they are emblematic of a state where the people are no longer masters of their government.

Well, the die has been cast, California. You have placed your fate into the hands of a political party and a governmental machine that cares for nothing except what it can squeeze out of you to keep the party-train rolling. There will come a time in the not-too-distant future when you will have cause to bitterly regret what happened last night, and to wonder when the disaster truly became unavoidable. Well, now you know: it happened last night when you elected Jerry Brown as your governor. You chose to kowtow to the labor unions; you chose to believe comforting lies rather than the horrible truth.

You will reap the whirlwind.

[UPDATE] Don't take this as a gloom-n-doom post, Morons. I'm quite happy with how last night turned out. We lost a few tough races we probably should have won, but California's fate was written in the starlight and every line on your palm. At least this way the Democrats get to own the mess they made in the first place. Wisconsin looked on that far shore and turned away -- let's be glad of that.

posted by Monty at 09:27 AM

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