There is a possibility of an economic downturn and critics say this is not hypothetical nor prophetic It is happening right now.
1. California residents are exiting the state because of high prices of homes commodities, gasoline and in general high cost of living. They are joining their companies now exiting the state; estimated number about 800,000.
2. High tech companies those in Fortune 500 have exited the company. Reason: high cost of regulation, fines, high cost of fuel, and not so friendly to business any more regulatory environmnet
3. Exit, transfer of high value individuals (billionaire) due to the yearly tax on wealth (subsequently repealed. The billionaires put up a fund to wage war vs the measure using political and legal means The Gov eventually folded up and ordered the repeal)
4. Regulatory over reach affecting:
1. Fuel supplies
1. Huge fines to refineries. Two refineries accounting for 16% of CA fuel supplies closed down due to huge fines that were imposed;
2. The shortfall is being replenished by imports from Asia: Korea, Singapare and India
resulting in higher prices due to freight cost, which takes a month from the port of
origin.
3. Fuel prices have skyrocketed as result surpassing the projected $8.43 per gallon.
4. This has affected fuel prices in Arizona and Nevada which buys fuel from California
refineries
