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economy: Is California's Economic Condition Being Ignored? - 07/23/09 02:10 AM
Listening to the broadcasters on some of the Business Networks, from Squawk Box (U.S. and Europe) to Fox Business, it is clear that the economic crisis facing California and its residents is either completely misunderstood or being ignored. Statistically, if California were a separate country (which many throughout the US believe is so) it would be one of the largest economies in the world. It cannot be lost on the national economy that more than 10% of the nation's population live in California and therefore, so it has not less than 10% of the housing market. The largest number and percentage
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economy: Where Have We Been ... And Where Are We Going??? - 12/29/08 02:18 AM
Since about 1978 we have been running an economy on the back of the consumer. During the last 30 years, real income has declined, as adjusted for inflation. The difference between real income adjusted for inflation and spending has been filled by credit. Credit was moved from a subjective decision by the local banker to a quantifiable objective standard measured by a credit score. Net worth, living within one's means, being fiscally responsible, and saving for a rainy day, were all replaced by merely affording a monthly payment. Price no longer mattered, as long as the monthly payment was tolerable. First
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