No fair share for California
As you know, rarely do banks do any kind of critical thinking well, and so often their timing is just plain bad---but yesterday, against the backdrop of a dry, smouldering Southern California, City National put out a press release that should make the southland's leaders burn a little hotter too.
I'll quote in part:
An overwhelming majority of California voters disapprove of the fact that the state's taxpayers send $52 billion a year more to Washington, D.C. than they receive in federal benefits, according to a statewide poll commissioned by City National Bank. The results released today also show that California voters want presidential candidates to address this issue during the 2008 election campaign.
Everyone has a general sense that California doesn't get a fair federal share, but to demonstrate how much of a deficit $52 billion is---well, for starters, that would be the low estimate of roughly the same amount that bond investors will lose off the subprime fiasco---you know, the one that's threatening global economic stability. The only difference is, that's a one-time hit to the globe, but California ships $52 billion or thereabouts out of state to pointless highway projects in Vermont and gravy trains in New Mexico every damn year.