Wednesday, Oct 07, 2009

First of many?

Guardian: Will California become America's first failed state?

One in four American mortgages that are "under water" are in California. In the Central Valley town of Merced, house prices have crashed by 70%. Two Democrat politicians have asked for their districts to be declared disaster zones, because of the poor economic conditions caused by foreclosures. In one city near Riverside, a squatter's camp of newly homeless labourers sleeping in their vehicles has grown up in a supermarket car park – the local government has provided toilets and a mobile shower. In the Los Angeles suburb of Pacoima, one in nine homeowners are now in default on their mortgage, and the local priest, the Rev John Lasseigne, has garnered national headlines – swapping saving souls to saving houses, by negotiating directly with banks.

Posted by afrobaggie @ 02:42 PM (2787 views)
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8 Comments

1. mark wadsworth said...

Can't they just follow the UK's lead on this and reflate the house price bubble? House prices can only go up, remember?

Wednesday, October 7, 2009 03:24PM Report Comment
 

2. fubar said...

They should print Califoney Dollars and it'll be alright.

Wednesday, October 7, 2009 03:39PM Report Comment
 

3. jack c said...

How about a new catch phrase for Arnie - "I'll be broke"

Wednesday, October 7, 2009 03:42PM Report Comment
 

4. drewster said...

Great article, thanks for posting afrobaggie.

Wednesday, October 7, 2009 04:18PM Report Comment
 

5. drewster said...

Mark W,

Do you remember Paul Krugman's article from a few weeks ago, "Flatland and the Zoned Zone"? Judging by this article in the Guardian, the worst-affected parts of California are the sprawling flatland towns: Riverside, Merced, Mendota, etc. Food for thought....

Wednesday, October 7, 2009 04:26PM Report Comment
 

6. mountain goat said...

Entertaining article thanks for posting. However, the strangely sudden change from extremely apocalyptic to extremely optimisitic made me wonder how objective it was?

Wednesday, October 7, 2009 09:19PM Report Comment
 

7. alan said...

The article is objective:

"California ... is the eighth largest economy in the world, with a population of 37 million. If it was an independent country it would be in the G8. And if it were a company, it would likely be declared bankrupt".

Maybe you watched the start of "The Running Man"...At what point does lawlessness and rioting increase?

Thursday, October 8, 2009 08:06AM Report Comment
 

8. the number cruncher said...

Stephen King's bread and circuses grotesque, the running man, is a extrapolated vision of what California and the world is becoming - I recommend you read it (authored under the pseudonym Richard Bachman). Way better than the film (which skipped a lot of the underlying political message).

The novel is set in a dystopian United States during the year 2025, in which the nation's economy is in ruins and world violence is rising

It shows an American man, without health care provision, watching his daughter die of an pollution related illness. 47,000 Americans avoidably die each year due to poor health care provision
It shows a populace mesmerised by watching fellow citizens compete in games on the TV, that are cruel and humiliating (and deadly) for cash prizes - anybody watch the x factor or big brother recently?
It show a ruthless and corrupt government, run by vested interests, exploiting fundamental Christianity and a fear of terrorism for the private gain of a secret powerful elite.

Thursday, October 8, 2009 10:15AM Report Comment
 

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