Reason.tv: Is California Too Big to Fail? Q&A with FlashReport's Jon Fleischman

Is California "too big to fail" or is a Golden State bankruptcy in the cards?

Reason.tv's Ted Balaker sat down with Jon Fleischman, founder and publisher of FlashReport, to talk about California's ongoing fiscal meltdown and how, after a barrage of bipartisan tax hikes and spending sprees, California's political class has yet to learn its lesson.

Shot by Hawk Jensen and Paul Detrick. Edited by Alex Manning.

About 9 minutes long. Scroll down for iPod, HD, and audio versions of this video.

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Comments

[Killer Asteroid]

"Too big to fail"?

What a concept!

[asdfgh]

Arnold has Maria's pipe wrench on his nads, she kicks him out and what's he supposed to do, he can't go stay with his communist Hollywood friends if he hasn't been pleasing them either.

How anyone thought Arnold would be different is difficult to understand.

[Dennis Kucinich]

Finally! Someone who understands me!

[Barack Obama]

I gotcha back buddy, I'm in the same boat!

[Lou Meengo]

Lol thats quite an excuse LOL

Lou
http://www.anon-resources.at.tc

[Shyne]

State of California = Too Stupid to Live.

[kinnath]

Time to put up the border fence -- and keep those damn Californians where they belong.

[robc]

No state is too big to fail. No country either.

[Citizen Nothing]

No way the feds let California go bankrupt.

[Corduroy Rocks]

That's my bet. No way the SEIU or the NEA will let the Democrat Party let it happen. There's simply too much for them to lose.

Imagine all of the media attention on where those state dollars are going during bankruptcy proceedings. Not only would it be embarrassing to them, they run the risk of having those contracts voided in bankruptcy.

California will go the way of GM and Chrylser.

[Jeffersonian]

It's important that we, the Great Unwashed, keep that from happening. If democracy is, as Mencken said, the idea that the common man knows what he wants, we need to make goddamn sure he gets it good and fucking hard.

[Mike Laursen]

Ye-ah, ba-by! Bailout coming our way! Thanks taxpayers! Now we can start our high-speed rail line from San Francisco to Eureka, build Prius lanes on all our freeways, and give all substitute teachers retirement at 50! Woohoo!

[R C Dean]

California will go the way of GM and Chrylser.

I agree, if what you mean is bailed out by the feds.

When trying to figure out what politicians will do, always ask yourself

(1) What will help their favored constituency? In this case, it will be bailing out California and all those SEIU jobs and pension plans.

(2) What will postpone any pain? Again, bail out California.

[bug]

I fully expect something tied to the Fed bailout stating that California legislators squash any notion of legalizing marijuana, even if the people vote in favor of the intiative... Bailouts have strings attached, many, many strings. 🙁

[ChrisH]

The heading on the YouTube window has "Flash Report" cut of, so that it's only "Flash Repo".

In my pre-caffeinated state, for a second I thought there was some company, Flash Repo, that's ready to sweep in and grab the serving silver from the governor's mansion as soon as the first bond misses a payment.

Well, I can dream, can't I?

[Johnny Clamboat]

Is California "too big to fail" or is a Golden State bankruptcy in the cards?

How do states declare bankruptcy?

[Pablo]

I dunno but I have a feeling we're gonna find out soon enough.

[Clauce Hopper]

Calif need not declare bankruptcy. They can just stop paying the bondholders.

[Colonel_Angus]

California can't collapse soon enough. I hope for thorough dystopia.

[Fred J Harris]

'to fail' in the context of the USA today is to be impoverished. Many, many Americans are going to be very poor indeed.

[myth buster]

No way will California get bailed out. Not a chance. The Democrats will try, but they will fail. You will have states succeeding from the union in retaliation.

[Just Some Guy]

Yo mama too big to fail!

[Dave In Houston]

No, it's not. Bankruptcy could be the best thing for the once Golden State.

No federal bailout. They got themselves into this mess and they can try to get themselves out of this mess.

I also hope all of those clowns leaving California stay out of Texas. We don't need sissies like that here in The Perfection that is Texas.

[Harry Schell]

Can I come back to TX...I was in Dallas for 14 years, then I had to go back to CA or be unemployed. I want out of here!

[KTWO]

I suspect everyone in CA government is praying

"Dear Lord, just let the festivities last for my time. Apres moi, and all that."

Many CA people have the same thought.

Getting into a lifeboat is the big concern over there. And the panic makes the situation ever worse as everyone tries to grab as much as possible.

Officially CA pols are trying to solve the problem. But individually they aren't. No one is going to give up one cent willingly. Or offend the powerful public employee unions either.

And no one will risk losing an election by making unpopular cuts. They all will keep blaming others; the evil companies, the evil rich, the rival political party, etc.

And lies work too. Just say all will be well, the recession has ended.

Anything to get past November.

[Joshua]

Cali's government sucks, but let's not get carried away. California's Debt-GDP Ratio is only 4%. That's frickin' tiny.

[cubanbob]

California like any other state cannot go bankrupt. It can default on its obligations but legally it cannot go bankrupt. Why do people keep stating this bit of idiocy regarding states filling for bankruptcy?

As for a federal bailout, that will never happen. Period. End of story. No other state will burden its citizens to bail out another state's financial folly. If the senate even attempted such a hare brained scheme there would be enough states joining together to amend the constitution to repeal the direct election of senators and to grant the state legislators the authority to instantly recall senators who don't toe the state legislature's line.

As a practical matter if the democrats were barely able to pass the health care monstrosity with the overwhelming majority in both houses of congress and are now running scared because of this vote there is no chance this congress will vote to bail out California or New York or Illinois from their self imposed meltdown.

[egoist]

More like too big to save.

[ActionJustin]

I'm all for libertarian theory and initiative, but California's tragedy is a petri dish of misguided libertarian experimentation in and out of the State. Prop 13, Energy deregulation, the 60% mandate, and a bloody destructive initiative process.

[wagnert in atlanta]

Is California too big to fail?
Yes.
And the Titanic was too big to sink.
Gonna be a heckuva hole in the water when the Golden State goes down.