State Senator Dean Florez (Blowhard) – Bakersfield, actually proposed that the State’s retirement system, CALPERS, "invest" in the State’s debt, in a letter to State Treasurer Bill Lockyer (D). Lockyer, whose been hiding from the media during the State’s budget crisis, had no immediate comment, but he had to be thinking: "why would CALPERS jump on the Titanic when she’s already halfway down?
Florez, who’s mom is running for Assembly against Republican Danny Gilmore, reputedly was an "investment banker" in Shafter for about 30 seconds before he decided to become a lifetime politician. Given the intellectual validity of his proposal, which is uh, zero, its not hard to see why he chose politics. Its the easiest way to "invest" everyone else’s money.
The fact is, there isn’t a market for California’s paper (for those of you in Sacramento, that mean "debt") because California has been run into the ground by Gray Davis and Arnold Schwarzenegger, with a cast of willing Democrats in the Legislature pushing higher spending the entire way. Oh sure, there were a smattering or GOP votes for these budgets, but they’ve all been defeated or on their way to being defeated now.
And as for the voters. They are no better. They continually authorize bonds that nobody will buy – over $50 billion worth – because California can’t make the payments from its general fund. And next month, guess what?! More bonds! And hey, let’s keep re-electing the geniuses that have bankrupted us! We’re so smart, you know.
With investor liquidity all but evaporated over the past three weeks, worldwide, there will be no market for California’s debt for some time, unless the interest rates are at confiscatory levels. Even so, I wouldn’t lend California any money for any interest rate. We are a mess and we have no executive leadership and no plan. Checkmate.
So Senator Florez, on the way to your next run at public office, you might want to go back to school and take a finance course or two. Or better yet, just remember, we have about $125 billion to spend so let’s not spend $145 billion. Okay?
October 8th, 2008 at 12:00 am
Wow. Brutal honesty. What a switch from typical political double-speak that we hear from candidates. Mike is right about the voters. I ran against Dean Florez in 2000 when the state had a one-time $12 billion dollar surplus, and Florez and the democrats squandered it and went on an endless borrowing and spending spree. And the voters ignored my warnings. Now, the chickens really have come home to roost.
Ken Kay
October 13th, 2008 at 12:00 am
CalPers would be the perfect agent to invest in California debt…. let the employee unions fund the fiasco that they created.