I just started reading Michael Lewis' big new Vanity Fair piece on California's precarious finances. More on that later. But for now, check out the chart, above, which tallies up the total debt of all U.S. states and breaks out California's contribution. Doesn't look too bad at first. But remember, there are 50 states. And every single one of them has less debt than Cali.
Taken together, the states have $1.045 trillion in debt. California has about $135 billion. New York is number two at $123 billion. Massachusetts is third, with a distant $75 billion. California isn't twice as high, but it's not far off (and these are 2009 numbers). And this situation is unlikely to improve any time soon. The most recent UCLA Anderson Forecast doesn't anticipate a turnaround in the state economy for another year, with no real sustained progress until 2017.
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Following in the footsteps of the Occupy Wall Street protest movement, a group called "Occupy LA" set up shop in front of City Hall over the weekend and have now begun to move around town.
Back in New York, things had turned ugly, as the two-week protest saw a bunch of protestors arrested as they marched across the Brooklyn Bridge. From what I can tell, Occupy LA was rather more mellow. I asked a KPCC colleague who had visited the protest what the protesters were, you know, protesting. He wasn't sure, but he did say that "We are the 99%" signs were all over the place.
The LA Times explains:
The movement takes issue with corporate influence on government and the shift of wealth and political clout toward the richest 1% of the population. Many protesters carried signs with variations on the slogan "We are the 99%."
Are bailed-out and formerly bankrupt U.S. car companies now recession-proof? Both General Motors and Chrysler had a big September: "General Motors Co. said its U.S. sales jumped 20% to 207,145 vehicles compared with September 2010. Chrysler Group's sales surged 27% to 127,334 vehicles, marking the company's best September since 2007." (LAT)
Is the Apple iPhone too grown up to have a wow factor? "'Industrial design is important, but in these small packages we are starting to bump into the laws of physics,' said Tim Bajarin, a consultant with Creative Strategies Inc. 'You aren't going to do anything that I would consider radical in design and still get this feature set and function.'" (WSJ)
Paul Krugman gets on China's case and highlights the massive U.S. trade deficit: "A return to economic health would look much more achievable if we weren’t spending $500 billion more each year on imported goods and services than foreigners spent on our exports." (NYT)
A month ago, I blogged about how Wells Fargo was preparing to increase debit card fees. We had asked for opinions via KPCC's Facebook page and gotten back…a reaction that was almost uniformly unhappy about Wells Fargo's move.
Now Bank of America has followed suit. The consensus among observers of the banking business is that the practice is now here to say, after more than a decade of banks discounting their services or getting rid of fees altogether. I'm one of those people who's never paid a fee to use a debit card. And I use it for nearly every purchase I make.
But I don't bank with BofA, or Wells Fargo. I belong to credit union. Back in August, when we asked Facebook nation what it thought about Wells Fargo, the credit union option was repeatedly suggested. This time around, when I tweeted out my old post and made the credit union point, I received pretty positive feedback.
The "Social Security is a Ponzi scheme" argument just won't go away. You'll recall that Rick Perry got in trouble for rehashing this allegation, made in his book, during a GOP candidates debate at the Reagan Library. Republicans then pivoted slightly, moving away from Perry's extreme view, toward their more traditional position: that Social Security needs to be "reformed."
The last time the GOP took a serious crack at reforming Social Security, George W. Bush was in the White House, and he put before Congress a proposal to privatize a portion of Social Security, insisting that investment returns were the best way for Americans to keep the system solvent.
Now Mitch Daniels has taken up the charge. Or I should say re-taken-up the charge, as the Indiana Governor, who's being touted as a possible vice-presidential pick, has been a critic of Social Security going back to the days when he was…George W. Bush's Director of the Office of Management and Budget.