But you're still in bed
And the California rain is turning red
Retail sales rose nationally in September, up 0.6% compared to expectations of 0.3%.
But not in California:
Based on sales tax revenue, it now appears that the California economy is in recession... September sales tax revenue was off 7% compared with last year.
What's the difference? Mortgage Equity Withdrawal. California is at the center of the housing bubble and the housing ATM bubble. No more cash-out refis, no more consumer.
And if you think that sales tax drop is funny, wait until you see how far below projections property taxes will come in over the next few years. Property tax revenues go up from construction of new houses and sales of existing homes at higher valuations. Both of which just stopped happening. And just as Arnie was ramping up spending!
And, to quote a late Californian singer, "We've only just begun..."