"The mortgage crisis is limited to only three States; California, Arizona, Nevada and Florida."
No doubt there are several reasons for spreading this lie. One it establishes the "contained" theory. Second, it makes the other 46 States feel good. Third, political cover. Why? Because the new executive feels like this is not crisis but opportunity. An opportunity to Federalize ever greater aspects of the nation. Pick a few States while they are down and do a partial takeover. It's been working for decades. Look at Medicaid and education.
Next we'll see initiatives promoting certain State behaviors; renewable energy, transit, universal health care.
The pusher is handing out free samples.
8 comments:
Rohm Emanuel may not have been the first to recognize that "a crisis is an opportunity", but he certainly is the master of it.
What this administration does not realize, however, is that the United States is California, just two years behind. The more they expand various programs, the more difficult it will be when the fiscal funding crisis hits.
The the new meme is courtesy of a couple of UV researchers via
Andrew Sullivan
The flaw in logic is rather glaring.
I will also note as a multi-decade subscriber to the Atlantic that the mag has really gone downhill in the past few issues.
Um, isn't that 4 states? ;-)
Martina,
Of course. It i [art of several long running jokes. Sorry to cause any confusion. First the classic Monty Python "Spanish Inquisition" skit. "Our chief weapons are..." Second has been the abysmal math of all these schemes. Fourth, I've been accused of being perfect so often I need to disprove the notion.
Please, keep on keeping me honest.
In thr mean time look at the link Lex put up.
And, yes Lex. The Atlantic has decayed. But look at all print media. Yesterday the LA Times deleted the "California" section folding it into the front section. The death spiral of print delivery media is apparent.
Martina -
Both Nevada and Arizona are "filler states", they exist just to keep the coasts apart (also known as the "fly over states"). They can be safely lumped into one state.
Several times a year my LA Times stops showing up. After several weeks I call, complain, get a refund and service starts again.
Only the insanely low price keeps me from giving up all together.
Maybe I do not tip sufficiently?
What the two researchers are saying is that, measured in dollar terms, 87% of all home price appreciation in the U.S. between 2000 and 2006 happened in California, Arizona, Nevada, and Florida. In fact, California alone accounted for 66% of the Housing Bubble.
If home prices go back to the 2000 level, then California will likewise account for 66% of the decline. (Of course, it could get much worse than 2000, which was a pretty prosperous year.)
The implication is that excessive faith in California is, more than anything else, the single most direct cause of the world economy derailing.
The most recent sale in my neighborhood was for a unit sold in 1999 for $120,000 but which sold for $90,000 last month.
Other units listed for 20% below tax value have been on the market for a year or more.
The housing market collapse has firmly arrived here in flyover country.
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