The Rally is Dead, Lockford, Northpark, Irvine

SCHWARZENEGGER riskiest performance California state is in bankruptcy. Although THE GOBERNATOR achieved to negotiate the approval of the budget. Deficit is at riskiest level in ages. California is the wealthiest state in the US. Alone might belong to the richest countries in the world. Vineyards, Silicon Valley, Oil, Hollywood, Tourism, etc ... are the main industries of the sunny state. What happened then ??? Since Hollywood continues with its heartbreaking and profitable movies. Wine is paid at its highest price, semiconductors and PC sales boosted, and oil, although at 61 dollars, it comes from the high 100s. The problem is once again, the credit bubble. The so expensive cost of living. With an average home price of more than 500.000 dollars, and a credit rate of 1,5 the average salaries ... the explanation is clear. Real Estate bubble in places such as Carmel, La jolla, San Jose, San Francisco or Santa Barbara ... people thought that credit levels resisted all economic attacks. And once again, bubble exploded. California was born when someone found out the incredible weather conditions and quality of life with sea and mountains, Hollywood moved there to record the movies in the outside and not all the time into a metal box called studio. Silicon Valley decided to shelter all internet incubators, in a movement described as very smart and ambitious from the state of California. But nothing is forever. Moreover, when the use of credit becomes irrational. You only had to walk through Orange County or LaJolla to acknowledge the situation was becoming really dangerous. But, as always, nothing happens till it happens. Nice boats, fancy Ferraris, glamorous parties, chick restaurants and pubs, ... All this leisure financed by the bank credit. Credit over credit, Bank over bank,... People use to say "the show must go on", moreover, in this place of the world... But in some extent, the show may be closed down if you do not even have money to pay the lighting or the stage rental... Difficult situation for a state with a more than 10% unemployment rate, and with the added risk of: "For those who once enjoyed a fancy way of life is tougher than for others to begin driving a 2.000 bucks auto, or eating a Big Mac ... " Ohio, Indiana, California, ... is the situation so good as the 2nd quarter banking results show ??? Is it real the nets of Goldman Sachs, JP Morgan, BoA or Citi ??? If you dive into these results, you find out that money emerged again the same way, via arbitrage financial operations and derivatives trading.... Nothing heard about commercial banking yet. Jose Luis Revilla Escudero Chairman & CEO WWShares, Inc - Global Wealth Management- www.worldwideshares.blogspot.com