In Schwarzenegger on Public Pensions and the Cost of the “Protected Class”, I placed a considerable portion of blame for California’s mess on the governor.

In response to the above article, “Poor House” wrote ….

Mish, you are continuing a big mistake of many “independents”. That is blaming Republicans for not stopping the Democrat/Socialist take over.

Poor House, you are simply wrong. It is important to be fair, and “Mr. California” wanted to float a freaking half-trillion dollar bond proposal in 2007. That proposal was sheer fiscal lunacy.

Schwarzenegger Sound Bites

  • $42.7 billion in general obligation bonds issued last year is “only the foot in the door, to whet the appetite.
  • It will take $500 billion to “rebuild California the way it ought to be“.
  • $500 billion is “too big for people to digest, so you don’t talk about that” even though he is talking about it.
  • California needs $500 billion even though it has “done tremendously with the revenue increases“.
  • California will not issue less debt even if the economy slows.
  • California “could face lower tax revenues” but he opposes tax hikes.

His proposal was fiscal insanity. Moreover, Schwarzenegger failed to take the pension and union issue seriously, until now.

It is very important to lay out expectations of what the country needs. That means criticizing failed policies of both parties, and praising politicians who get it correct, like governor Chris Christie and Representative Ron Paul.

That is also why

We need to send the right message, not praise undeserving Republicans simply because they are Republicans. I would gladly endorse Democrats if they preached the right message. We need to support policies not parties!

Mike “Mish” Shedlock
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