Crushing California…Its Over
Out with the Old in with the New California
AENN
Another down day on the stock market following weeks of market collapse which has seen over 7 trillion dollars lost over the last several months is now staring to become a major problem for the state of California.
Chriss Street the Vice President of New California State and nationally and internationally know economist has been calling for a market collapse for over 7 years that will lead to the economic collapse of the California government.
Against massive opposition from state leaders New California and Chriss Street have held steady to the predictions that we see in the markets today.
Of particular interest to New California is the NASDAQ which has seen stunning market drops over the last month.
Stock index futures point to a lower open Thursday, but where the market will end up by the close is anybody’s guess given the volatile action this week.
A late selloff yesterday after a roller-coaster session saw the Nasdaq take the biggest hit, off 3%. The buy-the-dip crowd made a valiant attempt midday but it faded. The broader market has been down four of the last five sessions.
Nasdaq 100 futures (NDX:IND) -0.8% are under the most pressure premarket, with S&P futures (SPX) -0.4% and Dow futures (INDU) -0.3% also down.
The 10-year Treasury yield is looking to test 2.8% on the downside, off 8 basis points to 2.84%. The 2-year is down 4 basis points to 2.59%.
“Overall, markets appear to be oscillating between three sometimes competing concerns: inflation, recession and stagflation,” Goldman Sachs said.
“For much of this week, markets appeared to move on from stagflation worries and even concerns about inflation as inflation expectations (and yields on 10-year Treasuries) receded,” Goldman said. “The focus instead has been on a potential impending recession – a notion fortified by the recent news that real GDP growth contracted by 1.4% in 1Q22.”
Street has been correct in his assesments of the markets and most accurate in his assesments of how much economic pain California will endure. The NASDAQ is the major source of revenue for the the state of California and its the NASDAQ that been hit the hardest.
California with an extorsionist economy has been running businesses small and large out of the state in record numbers for over 20 years. The net effect is California has no tax base to operate its government except for the capital gains realized from high tech stocks in the NASDAQ.
Coming Up Short
California’s governor will present the “May” Revise in a few days to the legislature and will have to factor into the budget equation the massive drop in capital gains it will see in the next 6 months. There could be as much as a 50%
