John Dvorak’s Second Opinion: California needs to face the music, go bankrupt – MarketWatch — I normally do not self promote my MarketWatch column on the blog, but this one is apt.
California already has issued IOUs to employees, which were eventually refused by the banks and ironically refused by the state itself. The only real solution to save California from the inevitable actually is the inevitable: Declare bankruptcy, and reset the system.
What will then emerge will be as important as the process and recovery. We will finally get to see, as the saga unfolds, what we saw in the city of Vallejo, Calif., during its bankruptcy proceedings — a pattern of corruption, cronyism, abuse and the defrauding of the taxpaying public. City officials making more than $300,000 a year, firemen making more than $200,000, friends hiring friends.
Government work should be a refuge, not a gold mine.
