Dr. Housing Bubble 10/24/09

[Crewleader]

California Budget Solution – Ignore It. $3 Billion Financial Gap by December. State Budget Deficit Already in the Billions. Tax Revenues Collapse and Unemployment and Underemployment at 23 Percent.

Many of those calling for a housing bottom seem to ignore the state budget problems that are already showing up in California’s finances. State revenues are collapsing. This is important to focus on because it will leave the state with a few options in remedying the deficit. It can either raise taxes or cut spending further. Both are bad for the overall housing market. And housing prices have not boomed like some have claimed. 475,000 notice of defaults will be sent out in 2009, a record breaking number. California is battling gaps in revenue even though it has some of the highest taxes in the country.

Let us first take a look at the California balance sheet:



http://www.doctorhousingbubble.com/california-budget-solution-ignore-it-3-billion-financial-gap-by-december-state-budget-deficit-already-in-the-billions-tax-revenues-collapse-and-unemployment-and-underemployment-at-23-percent/