The crisis and how it started.

The state was long characterized by its numerous economic opportunities, inviting business climate, and bustling real estate industries. But, the state was also regularly in deficit for the last several decades. This did not seem to matter. The state continued to borrow against future revenue, in order to finance its budget requirements – much like an individual would borrow against the speculative increase in their home’s value to pay for existing bills. The way they were able to do this, was by the sale of short-term notes for cash.

Californians always expected growth. Unemployment would stay low and businesses would continue to grow. They expected debt to always be paid off buy future profit. Loans upon loans were taken out to use on some endeavor or another. I.e(cars, vacations)

No one had expected the states method of income was going to backfire in till in 2008 when the country's economic crisis would come to its melting point. All the borrowing and expectation of return had left the state in disrepair since the money was not flowing anymore.

From the states heavy loss of money 68,000 jobs were lost.