David Friedberg: California is sitting on half a trillion dollars in bonds, staring at an $18B deficit that’s about to explode past $30B, and still plans to keep borrowing just to function. This is the world’s 4th largest economy, already financially cornered — and that’s before… pic.twitter.com/gM0C1plg5j
— Ian Miles Cheong (@ianmiles) January 10, 2026
David Friedberg: California is sitting on half a trillion dollars in bonds, staring at an $18B deficit that’s about to explode past $30B, and still plans to keep borrowing just to function. This is the world’s 4th largest economy, already financially cornered — and that’s before you even factor in the looming pension bomb. To meet existing pension promises alone, California may need to borrow another half a trillion dollars. Let that sink in. The bond market isn’t optional anymore — it’s life support. The real question is simple and terrifying: how does this end without collapse?
Chamath Palihapitiya: There is no way out for states like this. Federal bailouts aren’t coming — and even if they tried, the bond auctions would expose the truth instantly. Investors will look back and ask one question: why didn’t you cut waste when you had the chance? As Nick Shirley exposed, 20–30% of budgets could’ve been cut for a decade, freeing up $25–30 TRILLION to pay down debt. Instead, nothing was done. And now the same people want sympathy, bailouts, and trust.
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