ichy, I agree too and I have been arguing it for about 20 years now.
The problem is, for the same reason the NE needs it is why it can't have it. Eminent Domain.
Too many people LIVE and work here, so it is difficult to get the strait-lines needed to put in a good HSR. Add to it the topography and you will have some more difficulties.
I'm no rail engineer, but from what I understand you could make some pretty significant improvements in Acela Express speed without the use of Eminent Domain. I wish I could dig up my source but I believe that in a lot of places the train is limited by signaling or other infrastructure issues like old overhead wires.
Edit: Here's one example. Just last year they finally got around to upgrading the line between NYC and Philadephia. http://en.wikipedia.org/wiki/Northeast_Corridor#New_York_to_Philadelphia_increased_speeds
Edit #2: http://en.wikipedia.org/wiki/Acela_Express#Operating_speeds
South of New York, Acela Express service travels at 135 mph (217 km/h). The limiting factor is stated[by whom?] to be the overhead catenary support system which was constructed prior to 1935 and lacks the constant-tension features of the new catenary east of New Haven
Instead of spending billions in California the feds should spend a few hundred million to upgrade the electrical system in the Northeast Corridor.
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