Why the “smartest guy” in politics is worried. “The impact of federal policies on California’s budget has Gov. Jerry Brown worried. Obamacare, the Federal Reserve, the EPA… ObamaCare is Brown’s immediate concern – another rich irony, given that California was the first state to pass laws implementing the health-insurance scheme. Brown must expand Medi-Cal, its program for Medicare recipients, and federal rules make this ‘incredibly complex.’…” A really smart person would’ve realized that sooner and worked to derail it, but apparently personal political gain is all that matters to these “smart people”.

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Bonfire of the Absurdities February 2, 2013 at 8:28 am

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This above article is in the non-paying section of Barrons and should be accessible to all. However, today there is a piece behind the paywall (Part III of their annual roundtable with some top investors) where bond king Bill Gross talks about the current state of the economy. Here is a snippet:

“The Fed is buying 80% of the Treasury market today. It is remarkable to think that when the Treasury issues debt in the trillion-dollar-plus category, the Fed ends up buying most of it. The Treasury sells it to the banks and primary dealers, who sell it back to the Fed at a higher bid. This is a very different financial system from the free-market capitalism we’ve come to know. And it will continue until inflation exceeds the upper end of the central bank’s target of 2.5% or, by some miracle, we get real economic growth.”

The Treasury and the Fed are playing financial ping-pong with the banks in the middle, taking a cut. This is the best that the political elite in DC can come up with to “revive the economy.”

Joe Redfield February 2, 2013 at 8:29 am

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Another worry – there aren’t enough votes in the House to pass a California bailout, and they’re going to need one soon. As states go, California is too big to fail, but also too stupid to succeed.

poppajoe49 February 2, 2013 at 2:54 pm

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I smell a new stimulus plan coming down the pike.

danybhoy February 3, 2013 at 5:21 am

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Joe, it’s not about being too big to fail, but it’s about being too big to save.

Progressive Hemrrhoid February 2, 2013 at 10:23 am

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Since the liberals are so fond of quoting ‘Where California goes, the country goes”, in this case it’s broke, so they might be right for once.

danybhoy February 3, 2013 at 5:20 am

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He shoots & scores!

jcrowley1985 February 3, 2013 at 7:19 am

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Hidden due to low comment rating. Click here to see.

ooddballz February 3, 2013 at 7:22 am

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Ron Paul, a never was who sucked at the public teat for over 20 years.
http://orrinjohnson.com/blog/2012/05/01/ron-paul-campaign-so-what-if-we-cheat-whaddyagonnadoaboudit/

Don’t you have welfare fraud to commit?