California's Budget $21 Billion In the Red. Still.

California's state budget is $21B in the hole (and counting) and all their rabbits have been pulled from their hats. The scarves are already out of the sleeves, and the smoke and mirrors bit has been done. There is now much hand-wringing about how there is nowhere left to cut the budget.

Here is the reason you should be getting your economic news from Michael Shedlock:

"Yet, there is still little talk about cutting pensions, fixing the prison system, privatizing services, or doing anything about illegal immigrants. Those are items that should be at the top of the discussion list."