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But now all eyes are on Facebook: its IPO will singlehandedly solve all of California's budget problems for all years to come — just like Google's IPO had done.

Everybody still remembers the Google manna that descended on California. Holders of Google shares were able to sell them starting in February 2005. At first, people spent. They bought big houses at the top of the housing bubble and fancy cars. They splurged on restaurants and clothes and maybe a few boats. Sales taxes jumped. Then in early 2006, they paid their capital gains taxes, which coincided with a run-up of the stock market to produce a breathtaking and now legendary $7 billion leap in state revenues.

And the state budget jumped by 9.5%. The Republican governor loved it too. Everybody loves manna. Then came the crisis, and the manna was gone, and California had to pay contractors and others with IOUs instead of real money because it was bankrupt for the second time in its history.

Given California's "leadership," I'm betting on a third bankruptcy when the dust settles.

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