Tag Archives: dot-com bubble

Budget This

There’s a certain irrelevancy to all of the back-slapping out of Sacramento for their presiding over a “fiscally sound budget” when you read stories like this:

Sales of houses and condominiums in the most populous Southern California counties fell 29.9 percent from the previous month and 48.5 percent from a year earlier, DataQuick Information Systems said on Tuesday.

The report covers the counties of Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura and showed a total of 12,455 new and existing homes and condos sold in September, the lowest since the company began recording the data in 1988.

Without being alarmist… aw, hell, I’m going to be alarmist.  The real estate market was the only thing propping up the state’s economy.  There’s an attempt to try and trade one bubble for another and re-create the dot-com speculation circa 1998, but that’ll only go so far, too, and that crash will be just as vicious as the first one.  And looming strikes in almost every aspect of the entertainment industry in LA will make life difficult as well.  It’s through little fault of state government, but you can see a pretty clear path to recession now.

UPDATE: On a somewhat related note, you can’t raise a family in California anymore.

The CBP analysis estimates that in order to pay basic bills in California:
A single-parent family needs an annual income of $59,732, equivalent to an hourly wage of $28.72.
A two-parent family with one employed parent needs an annual income of $50,383, equivalent to an hourly wage of $24.22.
A family with two working parents needs an annual income of $72,343, equivalent to each parent working full-time for an hourly wage of $17.39.
A single adult needs an annual income of $28,336, equivalent to an hourly wage of $13.62.