California is one of the bigger problems (and there are some other massive problems) that the equity market continues to ignore. The 10th largest economy in the world (yes, if you take California by itself it would be in the top 10 economies in the entire world) is hemorrhaging. The land of glitz, dreams, sunshine, beaches continues to shoot themselves in the foot. It is a great microcosm of what is going on in the bigger picture. A refusal to acknowledge how serious things are and to take the pain. Of course California got themselves in this situation through bad politics trying to squash the enemy, business.
Well one of its darlings, has had enough. DaVita (NYSE: DVA), a leading provider of kidney care services with over $6 billion in revenue has said adios and heading to Denver Colorado. The company put out a press release detailing the move. Primarily among them:
The company expects to see millions of dollars in savings over time as a result of the change.
I love California. I have always said if I fail in life that my back up plan is to move to San Diego, grow my hair long, learn how to surf, and be a bum (why in the world do bum's choose to live in NYC or Chicago when you can practice bumhood in San Diego???) But the state is being as hard headed as can be in not seeing the error of their ways in making business difficult and refusing to get their own house in order. This is one glaring example of the consequences.
Thanks goes to Jody.