THE RECOVERY - AT 10:05 A.M. ET:  We all know that California, whose economy is larger than that of many countries, is in desperate economic trouble.  It's currently holding a garage sale, hoping to sell items owned by the state government to help pay debts.

But what about the other golden state, Florida?  Well, actually they call this one the sunshine state.  It seems there's not much sunshine:

HOLLYWOOD, Fla. — The smiling couple barreling ahead on the cover of Liberty magazine in 1926 knew exactly where to go. “Florida or Bust,” said the white paint on the car doors. “Four wheels, no brakes.”

So it has been for a century, as Florida welcomed thousands of newcomers every week, year after year, becoming the nation’s fourth-most-populous state with about 16 million people in 2000.

Imagine the shock, then, to discover that traffic is now heading the other way. That’s right, the Sunshine State is shrinking.

And...

“It’s dramatic,” said Stanley K. Smith, an economics professor at the University of Florida who compiled the report. “You have a state that was booming and has been a leader in population growth for the last 100 years that suddenly has seen a substantial shift.”

Florida is losing population, a rarity for a state that depends on population growth for its businesses and state government to survive.  It has become a political powerhouse entirely because of in-migration.  It ranks fourth in population, with more than 18 million people.

When California and Florida are in trouble, the nation is in trouble, no matter what happens in the fantasy world of Wall Street.

Florida is a state filled with retirees.  If Obamacare passes, that can be another blow to the elderly.  Not a happy time down there.

Welcome to the recovery.

August 30, 2009