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California Bankrupt?

Is the state of California bankrupt?  Well, an increasing number of politicians and economic analysts are answering that question in the affirmative.  The truth is that California is a complete and total economic disaster area.  The state government of California is projected to have a budget deficit of at least 19 billion dollars this year, and next year the budget gap is projected to grow to 37 billion dollars.  To put that in perspective, the entire budget for the government of California is only about $125 billion per year.  Already, California's credit rating is the lowest of all 50 states, and there are persistent rumors that it is about to go lower.  If California's credit rating is slashed, it will be very expensive for them to borrow the money that they desperately need.  Once upon a time, the state of California was the poster child for the American Dream, but now it is on the leading edge of America's rapidly unfolding economic nightmare.  (Read More.....)

16 Signs That The Rich Are Getting Richer And The Poor Are Getting Poorer

Never before in American history has so much wealth been concentrated in the hands of so few.  Once upon a time, children throughout the United States were taught that America was the land of opportunity where anyone can make it if they work really hard.  But today the system is designed so that wealth flows into the pockets of the rich as the rest of us struggle feverishly to stay above water.  The once great middle class that did so much to define America as a nation is slowly being squeezed out of existence.  For tens of millions of ordinary Americans, the American Dream is rapidly becoming the American Nightmare.  The labor of blue collar workers was once the engine that built the United States into an economic powerhouse, but today many of those workers have been replaced by robots and computers, or their jobs have been shipped overseas by greedy corporate executives.  Those who are in a position to exploit advances in technology and third world labor pools are becoming exceedingly wealthy, while the rest of us are left wondering why it seems as though we are working harder and harder for less and less.  The sad truth is that the rich are getting richer and the poor are getting poorer.  A very small percentage of Americans are sitting on massive piles of cash while an increasing number of Americans are having to rely on government handouts just to survive.  So is this a good thing for America? (Read More.....)

American Deadbeats

Is the current economic crisis creating a generation of American deadbeats?  Once upon a time in America, we were taught that no matter how much financial trouble we get in we pay our debts - no matter what.  But now that has fundamentally changed.  Today, record numbers of Americans are filing for bankruptcy and a new term had to be invented ("strategic defaults") to describe the large number of people who are making "business decisions" to walk away from underwater mortgages.  Meanwhile, many of these same individuals who are walking away from their debts are spending big money on cruises, vacations and new cars - as if they were still entitled to all of the good things that come with living the American Dream.  Below you will read some incredibly disgusting examples of this.  It is as if a whole generation of Americans has decided that "financial responsibility" is a problem that they don't care to be bothered with.  But what is it going to do to the U.S. financial system if we can no longer count on people to honor their debts? (Read More.....)