California is on a path to bankruptcy

The future of California is really stark. The outflows have been steady and consistent, with a massive spike since covid. Silicon Valley is really what’s keeping the state afloat, and there’s currently a mass exodus to from SF to Texas. As an economy, California is betting on a house of cards that must collapse at some point. California is always the high end cap of state debt, and then debt is steadily increasing. They spend like a valley girl with daddy’s no limit double platinum card.

5 Comments
 

Yes. Tesla, HP, and now Oracle are leaving California for the state of Texas will put a distress on the states budgets due to less tax revenue being generated.

However, the exodus is still occurring. Friends of mine are relocating their startup for Austin as well. I believe Austin will be the next SF.

Anyone familiar what will happen if the state itself collapses in its own debt?

 

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