This will impact the general obligation and lease-backed debt worth $14.8 billion.
The state of California is the dreamland for over two billion people across the globe. You have the excessive consumption of LA and then the high technology of the Bay Area.
"The Golden State" has faced a budget crisis since 2008. In light of this, Moody's wants to review for possible downgrades of as many as 32 California cities including Sacramento, Santa Monica, Fresno, Oakland and Berkeley. Even cities in Silicon Valley such as Santa Clara, Sunnyvale and Los Gatos might be downgraded on their debt and this is bad news coming at a time when the tech world is going through a resurgence. The U.S. economy needed a tech boom 2.0 to help it.
