Now you know why

My roots are here in Northeast Ohio. Grew up here, and at 18 I joined the U.S. Air Force. After serving four years in the military, and with the enormous high grade of C-, I enrolled, under the G.I. Bill at a State university.

Took me a while to finish, and boy was I consistent. I finished school with a GPA of a whopping C- average. Brilliant wasn't I?

In 1968 I was offered a great job in Southern California, so my then-wife and three toddler daughters, one in diapers, relocated to the great golden state of sunny California. 

Coming from snowy Northeast Ohio to beautiful and year-round sunny weather I thought I'd arrived in heaven. Oh yeah, and add to that the economy in 1968 was doing fantastic. My recollection is unemployment was around 4%.

The housing market was unbelievable. You could drape a sheet over two sticks and sell it for $100,000, and then three months later you could sell it for $300,000, or in many cases, refinance your home and "pull out" equity money, for anything you wanted. Oh, life was good.

I would phone my family and friends back in Ohio, especially during the winter months, and brag about the gorgeous California living with the world's greatest weather.

In 1968 I purchased a home in southern California for $26,000. In 1972 I sold that very same home for $42,000. I purchased a home for $49,750. Remember that price. I'll get to it later.

In 1973 a young 37-year old named Jerry Brown was elected Governor of California. He was so far out there with his whacko antics he attained the nickname of "Moonbeam" Brown. His girlfriend was Linda Ronstadt the singer. He wouldn't live in the Governor's mansion, and rode his bike around the streets of Sacramento.   

Businesses were flourishing; people were moving into California at an unbelievable pace.  Life was so good that no one really paid attention to "Moonbeam" Brown, and his far out policies because the economy, jobs, and the housing market was skyrocketing out of sight.

In fact, no one really cared too much about Hispanics "sneaking" across the border. Californians had the hidden mentality that projected "hey, let them come over here and pick the strawberries and do our yard work...we're doing so good we don't have time for that stuff".

"Moonbeam" Brown left office in 1983, but Californians were still living the good life. I must admit, I was right there in the middle of it all, soaking it up. In a Democrat controlled House and Senate Congressman Barney Frank and Senator Chris Dodd passed  a housing bill allowing "affordable" homes to all, especially the minorities. The Dodd-Frank bill allowed Fanny-Mae, Freddie Mac to fund homes for just about everyone with a pulse, even if they couldn't truly afford it. Their Constitutional rights said they were entitled it under the Dodd-Frank housing program.

These mortgages were then sold to banks and other lending institutions. And still the housing market was soaring. Remember that home I purchased in 1972 for $49,750? You may not believe me, but I have proof that my ex-wife later sold that very same house for $680,000

At the same time my daughter purchased a home for $375,000, and in less than two months it was appraised at $500,000. My other daughter purchased a home for $565,000, and two years later it was appraised at $920,000.

Then, the economy could not sustain this outrageous, unbelievable skyrocketing surge. Soon the gigantic housing market bubble burst, but more in California than anywhere else. People, that should not have been granted the mortgages they applied for could not sustain their mortgage obligations.

Banks and lending institutions began calling in their mortgage debts, with forecloses to follow. Housing property values plummeted so fast that many homeowners found their mortgage debt was actually higher than the appraised value of their home. 

Of course this had a gigantic negative effect on employment, jobs, and the overall economy. Citizens of California and many businesses began relocating to states with better tax advantages and employment opportunities. California began to economically "sink", and soon the good life in California was gone, and this great golden state became famous for only its great weather and not much more.

In 1999, while back in Northeast Ohio for a class reunion I met a classmate I've known since the 7th. grade. She was a widow, and after two dates I fell in love. Eleven months later we  married and I moved back to the area where I had grown up.   At first the teasing was coming from both Ohio and California on why I would leave the beautiful sunny California for snow-laden Northeast Ohio. I said it thirteen years ago, and I still say it today: "other than great weather what else does California have to offer"?  Gee, I don't get teased too much anymore.


Today, California is just about broke. Several cities are about to file bankruptcy, not being able to even meet their monthly government payroll. Lately, however California suffered their worst setback.

In the most recent California gubernatorial  race Californians had an opportunity to elect a successful businesswoman, Meg Whitman, who had a proven business track record as CEO of Hewlett-Packard. Her opponent? Back on the scene emerged "Moonbeam" Brown for his attempt at a second term as California's Governor.

Ms. Whitman campaigned on returning California to prosperity by creating jobs to stimulate the California economy. "Moonbeam" campaigned on promises to the minorities of free education, free healthcare, and a tax increase to the wealthy. Guess who won?

Today, the state of California is getting exactly what it voted for and exactly what it deserves.
The beautiful golden sunny state is economically sinking faster every day, from which they may never recover, but hey the weather is sure great there.

And that's Politics with Pete for today...God bless our country...and our troops