ZD spoke with someone who works for the federal government over the weekend. The person seemed to know what was up. I was trying to let them know about LA City Hall, and they were saying that although it is important to the Feds, here are the big picture things ZD was told to expect:
California is in a much worse situation than the rest of the U.S. economically. It's basically in it's own category.
It's really gonna get a lot worse and the government knows it, of course.
Here are the top two things to look for:
1) The U.S. has to fight the drug cartel on the border. But they can't do it from the U.S. side. So the U.S. will be pouring a lot of money into the Mexican government. I KNOW, I KNOW you are laughing. But it's getting to be a big enough problem, that the Feds are going to have to get serious of the U.S. will lose the border.
2) THEY ARE GOING TO HAVE TO CUT THE ENTITLEMENT MONEY!
Yes, yes...I know! That's directive #1 of the Nunez/Villar crowd...ALL ENTITLEMENT MONEY, ALL THE TIME, FOR ALL!!!
I informed the Federal employee that the politicians depend on the votes of the people who suck up all the entitlement money and they can't touch it or else they won't get re-elected.
The person told me that they know...BUT THAT'S HOW BAD IT'S GONNA GET: NO CHOICE. Even Villaragiosa will have to go back and tell the people he represents that the entitlement money has to be cut (or IS getting cut).
So look for those two things.
Maybe that's why Villar is complaining about the Fed bailout of Fanny/Freddie? He knows it's over for all the money he planned on funneling over to the people he represents.
It was a long conversation. I blog more of it later. But those were the two main points that came out of all of it.
Zuma's Ultimate Rant About LA City Hall
AND FINALLY. no matter what you think about the "loudness" level of Zuma Dogg when he speaks during the Council meetings (cause it's a big room, and I'm trying to hear myself over everyone, too...I speak softly at the Board of Supes/LAUSD/Santa Monica council meetings, etc)...BUT ZD WAS SHOCKINGLY ACCURATE AND ON-TOP OF THIS ENTIRE SUBPRIME CRISIS AND THE NEGATIVE ECONOMIC IMPACT IT WOULD BE HAVING. I posted that banks would be collapsing and all of this that is happening....LAST YEAR!!! Those who were reading my blogging when I was stuck in Cleveland last year and watching CNBC/Bloomberg 24 hours a day instead of Council meetings KNOW how correct I was all along. So it's time for the next round of predictions. They will be just as outrageous as the ones I made last year that were criticized and discounted by my haters...So to everyone else...I understand you didn't think ZD was the guy to turn to for global economic predictions....so maybe now I have some more credibility with you for the next round. (I'm only trying to help and I seem to be cursed with the ability to predict trends based on the info that is out there.) I don't have any more information than anyone else. I just seem to have a knack for knowing which person out of a thousand REALLY knows what is up -- then blasting that. And so far, it's a little too much like Rainman counting toothpicks on the floor. (Like I said...it's a curse!) Cause it's still another day I am starting out with $0.00 and it's only 9:30 am and it's already not good.