Now that the US mid-term elections are over and the Republicans have scored a decisive victory in the House, and won seats in the Senate, the thought must occur that California, which has stuck to its socialistic politics, is ever closer to going bust. The GOP in Congress is unlikely to tolerate a bailout for a state run by delusional, mostly Democratic, fools. But if California does go bust and defaults on its debt, what happens then? Maybe this would be a good thing in the long run. Several South American states have defaulted in the past, but they did recover, eventually.
I guess one not-so-difficult thing to predict is that businesses and people will continue to flee California. It is so sad: the last time I was there, the place appeared – maybe only on the surface – to be booming.
Rand Simberg has thoughts.