Irresponsible

The California fiscal situation is just plain irresponsible. How can they allow themselves to run out of cash? It is ridiculous. Not only will it damage their own economy but it will significantly negatively impact the economy as a whole. If California has to issue IOUs for any length of time look for the market to take a beating as it factors in the increasing likelihood of default by California.

I never understood games of chicken like this. It reminds me of strikes by professional sports unions. Both sides know a deal must be struck. Both sides know the longer they wait the worse the deal will be for BOTH sides. The hockey lockout/strike comes to mind. They basically killed their sport. Whatever fan base they had abandoned them when they lost a whole season, players had to take massive cuts b/c teams were on the verge of bankruptcy having lost an entire season, and the owners lost all the revenue for the year crushing them as well.

In California IOUs will hurt their economy, make CA pay more for future work because of the risk of non-payment or untimely payment, increase the cost of future debt and generally hurt the state's and the country's economy. Just make the compromise already. Any compromise now will almost certainly work out better for the state and the country than any compromise a month from now, no matter how much better each side thinks their plan is than the other side's plan. Meet in the middle and move on. Don't wait until the lights are being turned out on you because you haven't paid the electric bill. If I were a CA voter I would jump at the chance to vote out the unreasonable, irresponsible morons running that state into the ground.

Madison