OT any truth in this? - California will be out of money by February

http://www.news.com.au/couriermail/s...78-954,00.html


California will be out of money by February as huge debts mount
Article from: The Australian

By Chris Ayres in Los Angeles

December 13, 2008 03:06am

CALIFORNIA, one of the 10 largest economies in the world, will run out of
money by February, causing "financial Armageddon", according to dire new
budget projections.

The state's debts are mounting at a rate of $US1.7 million ($2.5million)
an hour.

The de facto insolvency of the most populous US state - home to such
economic engines as Silicon Valley, the Central Valley agricultural
region, Hollywood, Napa Valley, the Long Beach ports and the defence
research and production facilities of Los Angeles, San Diego and the
Mojave Desert - would represent a new scale of catastrophe in a year that
has seen financial markets and economies across the world implode.

Treasurer Bill Lockyer has said that $US5billion of public works
projects, including road and school construction, will have to be
cancelled because the state's lenders are worried about an impending
Iceland-style bankruptcy. California - which has a GDP of $US1.7 trillion
- already has the worst credit rating of any of the 50US states, The
Australian reports.

He says "without a budget solution, state financing of infrastructure
projects will stop".

For California's Republican Governor, Arnold Schwarzenegger, the crisis
represents a humiliating final act to his second term. Mr Schwarzenegger,
61, came to power in 2003 because of an almost identical financial
calamity, which resulted in his Democratic predecessor, Gray Davis, being
"recalled" from office.

At the time, he promised an end to California's tax-and-spend policies
and runaway expenses, yet over the past four years of his administration
the state's budget has grown by 40 per cent to $US144.5 billion. After
the housing crash, recession and credit crunch, the state can no longer
afford this with tax collection.

As the crisis continues and California's credit rating deteriorates, the
cost to the state of borrowing keeps rising - a process that could
ultimately lead to bankruptcy.

Yes. New York can't make it to Sept09 before a forced bankruptcy. Most
states and a lot of municipalities got caught out by toxic investment
products - the were the last Greater Fools in the chain of daisies and were
the targets of Wall Street all along. Sales, income, and gas tax revenues
are in the tank but government budgets were based on what seemed to us even
two years ago as overly rosy projections. Don't expect any property tax
relief through re-assessments, either. Doesn't matter if one's house is
worth half the last assessment.
Iirc, Birmingham AL was the largest city to declare - so far. It will be
very interesting to see how this giant issue will be 'handled'. Once the
feds shifted medicare/medicaid expenses onto the states this became only a
matter of time. The Great Recession may have caused a revenue downturn, but
the toxic products are the killer.
Merry Christmas
j

"Ron" <xnews.com> wrote in message ...
> http://www.news.com.au/couriermail/s...78-954,00.html
>
>
> California will be out of money by February as huge debts mount
> Article from: The Australian
>
> By Chris Ayres in Los Angeles
>
> December 13, 2008 03:06am
>
> CALIFORNIA, one of the 10 largest economies in the world, will run out of
> money by February, causing "financial Armageddon", according to dire new
> budget projections.
>
> The state's debts are mounting at a rate of $US1.7 million ($2.5million)
> an hour.
>
> The de facto insolvency of the most populous US state - home to such
> economic engines as Silicon Valley, the Central Valley agricultural
> region, Hollywood, Napa Valley, the Long Beach ports and the defence
> research and production facilities of Los Angeles, San Diego and the
> Mojave Desert - would represent a new scale of catastrophe in a year that
> has seen financial markets and economies across the world implode.
>
> Treasurer Bill Lockyer has said that $US5billion of public works
> projects, including road and school construction, will have to be
> cancelled because the state's lenders are worried about an impending
> Iceland-style bankruptcy. California - which has a GDP of $US1.7 trillion
> - already has the worst credit rating of any of the 50US states, The
> Australian reports.
>
> He says "without a budget solution, state financing of infrastructure
> projects will stop".
>
> For California's Republican Governor, Arnold Schwarzenegger, the crisis
> represents a humiliating final act to his second term. Mr Schwarzenegger,
> 61, came to power in 2003 because of an almost identical financial
> calamity, which resulted in his Democratic predecessor, Gray Davis, being
> "recalled" from office.
>
> At the time, he promised an end to California's tax-and-spend policies
> and runaway expenses, yet over the past four years of his administration
> the state's budget has grown by 40 per cent to $US144.5 billion. After
> the housing crash, recession and credit crunch, the state can no longer
> afford this with tax collection.
>
> As the crisis continues and California's credit rating deteriorates, the
> cost to the state of borrowing keeps rising - a process that could
> ultimately lead to bankruptcy.

"John Bradley" > wrote in
rlakestechnologygroup:

We are very lucky in Australia.
There is a slight down turn, but not enough to get excited about.
The trouble in the USA and europe has given us the cheapest petrol in
five years! Now that certainly helps

Ron

> Yes. New York can't make it to Sept09 before a forced bankruptcy. Most
> states and a lot of municipalities got caught out by toxic investment
> products - the were the last Greater Fools in the chain of daisies and
> were the targets of Wall Street all along. Sales, income, and gas tax
> revenues are in the tank but government budgets were based on what
> seemed to us even two years ago as overly rosy projections. Don't
> expect any property tax relief through re-assessments, either. Doesn't
> matter if one's house is worth half the last assessment.
> Iirc, Birmingham AL was the largest city to declare - so far. It will
> be very interesting to see how this giant issue will be 'handled'.
> Once the feds shifted medicare/medicaid expenses onto the states this
> became only a matter of time. The Great Recession may have caused a
> revenue downturn, but the toxic products are the killer.
> Merry Christmas
> j
>
> "Ron" <xnews.com> wrote in message
> ...
>> http://www.news.com.au/couriermail/s...78-954,00.html
>>
>>
>> California will be out of money by February as huge debts mount
>> Article from: The Australian
>>
>> By Chris Ayres in Los Angeles
>>
>> December 13, 2008 03:06am
>>
>> CALIFORNIA, one of the 10 largest economies in the world, will run
>> out of money by February, causing "financial Armageddon", according
>> to dire new budget projections.
>>
>> The state's debts are mounting at a rate of $US1.7 million
>> ($2.5million) an hour.
>>
>> The de facto insolvency of the most populous US state - home to such
>> economic engines as Silicon Valley, the Central Valley agricultural
>> region, Hollywood, Napa Valley, the Long Beach ports and the defence
>> research and production facilities of Los Angeles, San Diego and the
>> Mojave Desert - would represent a new scale of catastrophe in a year
>> that has seen financial markets and economies across the world
>> implode.
>>
>> Treasurer Bill Lockyer has said that $US5billion of public works
>> projects, including road and school construction, will have to be
>> cancelled because the state's lenders are worried about an impending
>> Iceland-style bankruptcy. California - which has a GDP of $US1.7
>> trillion - already has the worst credit rating of any of the 50US
>> states, The Australian reports.
>>
>> He says "without a budget solution, state financing of infrastructure
>> projects will stop".
>>
>> For California's Republican Governor, Arnold Schwarzenegger, the
>> crisis represents a humiliating final act to his second term. Mr
>> Schwarzenegger, 61, came to power in 2003 because of an almost
>> identical financial calamity, which resulted in his Democratic
>> predecessor, Gray Davis, being "recalled" from office.
>>
>> At the time, he promised an end to California's tax-and-spend
>> policies and runaway expenses, yet over the past four years of his
>> administration the state's budget has grown by 40 per cent to
>> $US144.5 billion. After the housing crash, recession and credit
>> crunch, the state can no longer afford this with tax collection.
>>
>> As the crisis continues and California's credit rating deteriorates,
>> the cost to the state of borrowing keeps rising - a process that
>> could ultimately lead to bankruptcy.
>
>
>

Oh, it's true.

--
Skip Middleton
www.shadowcatcherimagery.com
www.pbase.com/skipm
"Ron" <xnews.com> wrote in message ...
> http://www.news.com.au/couriermail/s...78-954,00.html
>
>
> California will be out of money by February as huge debts mount
> Article from: The Australian
>
> By Chris Ayres in Los Angeles
>
> December 13, 2008 03:06am
>
> CALIFORNIA, one of the 10 largest economies in the world, will run out of
> money by February, causing "financial Armageddon", according to dire new
> budget projections.
>
> The state's debts are mounting at a rate of $US1.7 million ($2.5million)
> an hour.
>
> The de facto insolvency of the most populous US state - home to such
> economic engines as Silicon Valley, the Central Valley agricultural
> region, Hollywood, Napa Valley, the Long Beach ports and the defence
> research and production facilities of Los Angeles, San Diego and the
> Mojave Desert - would represent a new scale of catastrophe in a year that
> has seen financial markets and economies across the world implode.
>
> Treasurer Bill Lockyer has said that $US5billion of public works
> projects, including road and school construction, will have to be
> cancelled because the state's lenders are worried about an impending
> Iceland-style bankruptcy. California - which has a GDP of $US1.7 trillion
> - already has the worst credit rating of any of the 50US states, The
> Australian reports.
>
> He says "without a budget solution, state financing of infrastructure
> projects will stop".
>
> For California's Republican Governor, Arnold Schwarzenegger, the crisis
> represents a humiliating final act to his second term. Mr Schwarzenegger,
> 61, came to power in 2003 because of an almost identical financial
> calamity, which resulted in his Democratic predecessor, Gray Davis, being
> "recalled" from office.
>
> At the time, he promised an end to California's tax-and-spend policies
> and runaway expenses, yet over the past four years of his administration
> the state's budget has grown by 40 per cent to $US144.5 billion. After
> the housing crash, recession and credit crunch, the state can no longer
> afford this with tax collection.
>
> As the crisis continues and California's credit rating deteriorates, the
> cost to the state of borrowing keeps rising - a process that could
> ultimately lead to bankruptcy.

San Diego is in dire straits, too. The hopefully-soon-to-be-removed City
Attorney is advocating bankruptcy for that city, too.

--
Skip Middleton
www.shadowcatcherimagery.com
www.pbase.com/skipm
"John Bradley" > wrote in message
rlakestechnologygroup...
> Yes. New York can't make it to Sept09 before a forced bankruptcy. Most
> states and a lot of municipalities got caught out by toxic investment
> products - the were the last Greater Fools in the chain of daisies and
> were the targets of Wall Street all along. Sales, income, and gas tax
> revenues are in the tank but government budgets were based on what seemed
> to us even two years ago as overly rosy projections. Don't expect any
> property tax relief through re-assessments, either. Doesn't matter if
> one's house is worth half the last assessment.
> Iirc, Birmingham AL was the largest city to declare - so far. It will be
> very interesting to see how this giant issue will be 'handled'. Once the
> feds shifted medicare/medicaid expenses onto the states this became only a
> matter of time. The Great Recession may have caused a revenue downturn,
> but the toxic products are the killer.
> Merry Christmas
> j
>
> "Ron" <xnews.com> wrote in message
> ...
>> http://www.news.com.au/couriermail/s...78-954,00.html
>>
>>
>> California will be out of money by February as huge debts mount
>> Article from: The Australian
>>
>> By Chris Ayres in Los Angeles
>>
>> December 13, 2008 03:06am
>>
>> CALIFORNIA, one of the 10 largest economies in the world, will run out of
>> money by February, causing "financial Armageddon", according to dire new
>> budget projections.
>>
>> The state's debts are mounting at a rate of $US1.7 million ($2.5million)
>> an hour.
>>
>> The de facto insolvency of the most populous US state - home to such
>> economic engines as Silicon Valley, the Central Valley agricultural
>> region, Hollywood, Napa Valley, the Long Beach ports and the defence
>> research and production facilities of Los Angeles, San Diego and the
>> Mojave Desert - would represent a new scale of catastrophe in a year that
>> has seen financial markets and economies across the world implode.
>>
>> Treasurer Bill Lockyer has said that $US5billion of public works
>> projects, including road and school construction, will have to be
>> cancelled because the state's lenders are worried about an impending
>> Iceland-style bankruptcy. California - which has a GDP of $US1.7 trillion
>> - already has the worst credit rating of any of the 50US states, The
>> Australian reports.
>>
>> He says "without a budget solution, state financing of infrastructure
>> projects will stop".
>>
>> For California's Republican Governor, Arnold Schwarzenegger, the crisis
>> represents a humiliating final act to his second term. Mr Schwarzenegger,
>> 61, came to power in 2003 because of an almost identical financial
>> calamity, which resulted in his Democratic predecessor, Gray Davis, being
>> "recalled" from office.
>>
>> At the time, he promised an end to California's tax-and-spend policies
>> and runaway expenses, yet over the past four years of his administration
>> the state's budget has grown by 40 per cent to $US144.5 billion. After
>> the housing crash, recession and credit crunch, the state can no longer
>> afford this with tax collection.
>>
>> As the crisis continues and California's credit rating deteriorates, the
>> cost to the state of borrowing keeps rising - a process that could
>> ultimately lead to bankruptcy.
>
>

Ron added these comments in the current discussion du jour ...

> http://www.news.com.au/couriermail/s...24792678-954,0
> 0.html
>
Couldn't happen to a nicer set of Far Left Loons. One BIG
contributor to the problem is the huge illegal alien population
out there which runs into Kalyfornia's ultra-liberal allowances
for public services such as schools, medical, marriage, welfare,
and the like. Since these "people" pay no taxes yet consume great
amounts of resources, it shouldn't be a surprise that there's a
growing fiscal crisis.

Kalyfornia is arguably the most liberal state in the union wrt
social engineering and social services, plus they have hung out
the welcome mat via sanctuary cities and entire counties that
enourage the type of behavior that runs of expenditures as I
described above plus law enforcement of the illegals who commit
heinous crimes.

I'm sure that your readers have no desire to bail out the car
companies with their tax dollars, well, you can be sure that I
don't want my tax dollars being spent on illegal wetbacks and
queers!

> California will be out of money by February as huge debts
> mount Article from: The Australian
>
> By Chris Ayres in Los Angeles
>
> December 13, 2008 03:06am
>
> CALIFORNIA, one of the 10 largest economies in the world, will
> run out of money by February, causing "financial Armageddon",
> according to dire new budget projections.
>
> The state's debts are mounting at a rate of $US1.7 million
> ($2.5million) an hour.
>
> The de facto insolvency of the most populous US state - home
> to such economic engines as Silicon Valley, the Central Valley
> agricultural region, Hollywood, Napa Valley, the Long Beach
> ports and the defence research and production facilities of
> Los Angeles, San Diego and the Mojave Desert - would represent
> a new scale of catastrophe in a year that has seen financial
> markets and economies across the world implode.
>
> Treasurer Bill Lockyer has said that $US5billion of public
> works projects, including road and school construction, will
> have to be cancelled because the state's lenders are worried
> about an impending Iceland-style bankruptcy. California -
> which has a GDP of $US1.7 trillion - already has the worst
> credit rating of any of the 50US states, The Australian
> reports.
>
> He says "without a budget solution, state financing of
> infrastructure projects will stop".
>
> For California's Republican Governor, Arnold Schwarzenegger,
> the crisis represents a humiliating final act to his second
> term. Mr Schwarzenegger, 61, came to power in 2003 because of
> an almost identical financial calamity, which resulted in his
> Democratic predecessor, Gray Davis, being "recalled" from
> office.
>
> At the time, he promised an end to California's tax-and-spend
> policies and runaway expenses, yet over the past four years of
> his administration the state's budget has grown by 40 per cent
> to $US144.5 billion. After the housing crash, recession and
> credit crunch, the state can no longer afford this with tax
> collection.
>
> As the crisis continues and California's credit rating
> deteriorates, the cost to the state of borrowing keeps rising
> - a process that could ultimately lead to bankruptcy.
>



--
HP, aka Jerry

“Recession is when your neighbor loses his job. Depression is
when you lose your job” – Ronald Reagan

Two words: Rio Tinto.
But at least sales of Foster's should skyrocket when 14000 diggers hit the
big cities!
Cheers
john

"Ron" <xnews.com> wrote in message ...
> "John Bradley" > wrote in
> rlakestechnologygroup:
>
> We are very lucky in Australia.
> There is a slight down turn, but not enough to get excited about.
> The trouble in the USA and europe has given us the cheapest petrol in
> five years! Now that certainly helps
>
> Ron
>
>> Yes. New York can't make it to Sept09 before a forced bankruptcy. Most
>> states and a lot of municipalities got caught out by toxic investment
>> products - the were the last Greater Fools in the chain of daisies and
>> were the targets of Wall Street all along. Sales, income, and gas tax
>> revenues are in the tank but government budgets were based on what
>> seemed to us even two years ago as overly rosy projections. Don't
>> expect any property tax relief through re-assessments, either. Doesn't
>> matter if one's house is worth half the last assessment.
>> Iirc, Birmingham AL was the largest city to declare - so far. It will
>> be very interesting to see how this giant issue will be 'handled'.
>> Once the feds shifted medicare/medicaid expenses onto the states this
>> became only a matter of time. The Great Recession may have caused a
>> revenue downturn, but the toxic products are the killer.
>> Merry Christmas
>> j
>>
>> "Ron" <xnews.com> wrote in message
>> ...
>>> http://www.news.com.au/couriermail/s...78-954,00.html
>>>
>>>
>>> California will be out of money by February as huge debts mount
>>> Article from: The Australian
>>>
>>> By Chris Ayres in Los Angeles
>>>
>>> December 13, 2008 03:06am
>>>
>>> CALIFORNIA, one of the 10 largest economies in the world, will run
>>> out of money by February, causing "financial Armageddon", according
>>> to dire new budget projections.
>>>
>>> The state's debts are mounting at a rate of $US1.7 million
>>> ($2.5million) an hour.
>>>
>>> The de facto insolvency of the most populous US state - home to such
>>> economic engines as Silicon Valley, the Central Valley agricultural
>>> region, Hollywood, Napa Valley, the Long Beach ports and the defence
>>> research and production facilities of Los Angeles, San Diego and the
>>> Mojave Desert - would represent a new scale of catastrophe in a year
>>> that has seen financial markets and economies across the world
>>> implode.
>>>
>>> Treasurer Bill Lockyer has said that $US5billion of public works
>>> projects, including road and school construction, will have to be
>>> cancelled because the state's lenders are worried about an impending
>>> Iceland-style bankruptcy. California - which has a GDP of $US1.7
>>> trillion - already has the worst credit rating of any of the 50US
>>> states, The Australian reports.
>>>
>>> He says "without a budget solution, state financing of infrastructure
>>> projects will stop".
>>>
>>> For California's Republican Governor, Arnold Schwarzenegger, the
>>> crisis represents a humiliating final act to his second term. Mr
>>> Schwarzenegger, 61, came to power in 2003 because of an almost
>>> identical financial calamity, which resulted in his Democratic
>>> predecessor, Gray Davis, being "recalled" from office.
>>>
>>> At the time, he promised an end to California's tax-and-spend
>>> policies and runaway expenses, yet over the past four years of his
>>> administration the state's budget has grown by 40 per cent to
>>> $US144.5 billion. After the housing crash, recession and credit
>>> crunch, the state can no longer afford this with tax collection.
>>>
>>> As the crisis continues and California's credit rating deteriorates,
>>> the cost to the state of borrowing keeps rising - a process that
>>> could ultimately lead to bankruptcy.
>>
>>
>>
>

"John Bradley" > wrote in
news
> Two words: Rio Tinto.
> But at least sales of Foster's should skyrocket when 14000 diggers hit
> the big cities!
> Cheers
> john

Hi John,

Only if they are foreign Soldiers
Not many people in AU drink that crap
Most of it is exported.

Cheers,
Ron
>
> "Ron" <xnews.com> wrote in message
> ...
>> "John Bradley" > wrote in
>> rlakestechnologygrou
>> p:
>>
>> We are very lucky in Australia.
>> There is a slight down turn, but not enough to get excited about.
>> The trouble in the USA and europe has given us the cheapest petrol in
>> five years! Now that certainly helps
>>
>> Ron
>>
>>> Yes. New York can't make it to Sept09 before a forced bankruptcy.
>>> Most states and a lot of municipalities got caught out by toxic
>>> investment products - the were the last Greater Fools in the chain
>>> of daisies and were the targets of Wall Street all along. Sales,
>>> income, and gas tax revenues are in the tank but government budgets
>>> were based on what seemed to us even two years ago as overly rosy
>>> projections. Don't expect any property tax relief through
>>> re-assessments, either. Doesn't matter if one's house is worth half
>>> the last assessment. Iirc, Birmingham AL was the largest city to
>>> declare - so far. It will be very interesting to see how this giant
>>> issue will be 'handled'. Once the feds shifted medicare/medicaid
>>> expenses onto the states this became only a matter of time. The
>>> Great Recession may have caused a revenue downturn, but the toxic
>>> products are the killer. Merry Christmas
>>> j
>>>
>>> "Ron" <xnews.com> wrote in message
>>> ...
>>>> http://www.news.com.au/couriermail/s...678-954,00.htm
>>>> l
>>>>
>>>>
>>>> California will be out of money by February as huge debts mount
>>>> Article from: The Australian
>>>>
>>>> By Chris Ayres in Los Angeles
>>>>
>>>> December 13, 2008 03:06am
>>>>
>>>> CALIFORNIA, one of the 10 largest economies in the world, will run
>>>> out of money by February, causing "financial Armageddon", according
>>>> to dire new budget projections.
>>>>
>>>> The state's debts are mounting at a rate of $US1.7 million
>>>> ($2.5million) an hour.
>>>>
>>>> The de facto insolvency of the most populous US state - home to
>>>> such economic engines as Silicon Valley, the Central Valley
>>>> agricultural region, Hollywood, Napa Valley, the Long Beach ports
>>>> and the defence research and production facilities of Los Angeles,
>>>> San Diego and the Mojave Desert - would represent a new scale of
>>>> catastrophe in a year that has seen financial markets and economies
>>>> across the world implode.
>>>>
>>>> Treasurer Bill Lockyer has said that $US5billion of public works
>>>> projects, including road and school construction, will have to be
>>>> cancelled because the state's lenders are worried about an
>>>> impending Iceland-style bankruptcy. California - which has a GDP of
>>>> $US1.7 trillion - already has the worst credit rating of any of the
>>>> 50US states, The Australian reports.
>>>>
>>>> He says "without a budget solution, state financing of
>>>> infrastructure projects will stop".
>>>>
>>>> For California's Republican Governor, Arnold Schwarzenegger, the
>>>> crisis represents a humiliating final act to his second term. Mr
>>>> Schwarzenegger, 61, came to power in 2003 because of an almost
>>>> identical financial calamity, which resulted in his Democratic
>>>> predecessor, Gray Davis, being "recalled" from office.
>>>>
>>>> At the time, he promised an end to California's tax-and-spend
>>>> policies and runaway expenses, yet over the past four years of his
>>>> administration the state's budget has grown by 40 per cent to
>>>> $US144.5 billion. After the housing crash, recession and credit
>>>> crunch, the state can no longer afford this with tax collection.
>>>>
>>>> As the crisis continues and California's credit rating
>>>> deteriorates, the cost to the state of borrowing keeps rising - a
>>>> process that could ultimately lead to bankruptcy.
>>>
>>>
>>>
>>
>
>
>

Ha. I don't like it either. We were sponsored once by some crap called
'Steinlager' and used to trade away cases of it for T-shirts or hats from
other teams until word got around about how bad it was.
j

"Ron" <xnews.com> wrote in message ...
> "John Bradley" > wrote in
> news >
>> Two words: Rio Tinto.
>> But at least sales of Foster's should skyrocket when 14000 diggers hit
>> the big cities!
>> Cheers
>> john
>
> Hi John,
>
> Only if they are foreign Soldiers
> Not many people in AU drink that crap
> Most of it is exported.
>
> Cheers,
> Ron
>>
>> "Ron" <xnews.com> wrote in message
>> ...
>>> "John Bradley" > wrote in
>>> rlakestechnologygrou
>>> p:
>>>
>>> We are very lucky in Australia.
>>> There is a slight down turn, but not enough to get excited about.
>>> The trouble in the USA and europe has given us the cheapest petrol in
>>> five years! Now that certainly helps
>>>
>>> Ron
>>>
>>>> Yes. New York can't make it to Sept09 before a forced bankruptcy.
>>>> Most states and a lot of municipalities got caught out by toxic
>>>> investment products - the were the last Greater Fools in the chain
>>>> of daisies and were the targets of Wall Street all along. Sales,
>>>> income, and gas tax revenues are in the tank but government budgets
>>>> were based on what seemed to us even two years ago as overly rosy
>>>> projections. Don't expect any property tax relief through
>>>> re-assessments, either. Doesn't matter if one's house is worth half
>>>> the last assessment. Iirc, Birmingham AL was the largest city to
>>>> declare - so far. It will be very interesting to see how this giant
>>>> issue will be 'handled'. Once the feds shifted medicare/medicaid
>>>> expenses onto the states this became only a matter of time. The
>>>> Great Recession may have caused a revenue downturn, but the toxic
>>>> products are the killer. Merry Christmas
>>>> j
>>>>
>>>> "Ron" <xnews.com> wrote in message
>>>> ...
>>>>> http://www.news.com.au/couriermail/s...678-954,00.htm
>>>>> l
>>>>>
>>>>>
>>>>> California will be out of money by February as huge debts mount
>>>>> Article from: The Australian
>>>>>
>>>>> By Chris Ayres in Los Angeles
>>>>>
>>>>> December 13, 2008 03:06am
>>>>>
>>>>> CALIFORNIA, one of the 10 largest economies in the world, will run
>>>>> out of money by February, causing "financial Armageddon", according
>>>>> to dire new budget projections.
>>>>>
>>>>> The state's debts are mounting at a rate of $US1.7 million
>>>>> ($2.5million) an hour.
>>>>>
>>>>> The de facto insolvency of the most populous US state - home to
>>>>> such economic engines as Silicon Valley, the Central Valley
>>>>> agricultural region, Hollywood, Napa Valley, the Long Beach ports
>>>>> and the defence research and production facilities of Los Angeles,
>>>>> San Diego and the Mojave Desert - would represent a new scale of
>>>>> catastrophe in a year that has seen financial markets and economies
>>>>> across the world implode.
>>>>>
>>>>> Treasurer Bill Lockyer has said that $US5billion of public works
>>>>> projects, including road and school construction, will have to be
>>>>> cancelled because the state's lenders are worried about an
>>>>> impending Iceland-style bankruptcy. California - which has a GDP of
>>>>> $US1.7 trillion - already has the worst credit rating of any of the
>>>>> 50US states, The Australian reports.
>>>>>
>>>>> He says "without a budget solution, state financing of
>>>>> infrastructure projects will stop".
>>>>>
>>>>> For California's Republican Governor, Arnold Schwarzenegger, the
>>>>> crisis represents a humiliating final act to his second term. Mr
>>>>> Schwarzenegger, 61, came to power in 2003 because of an almost
>>>>> identical financial calamity, which resulted in his Democratic
>>>>> predecessor, Gray Davis, being "recalled" from office.
>>>>>
>>>>> At the time, he promised an end to California's tax-and-spend
>>>>> policies and runaway expenses, yet over the past four years of his
>>>>> administration the state's budget has grown by 40 per cent to
>>>>> $US144.5 billion. After the housing crash, recession and credit
>>>>> crunch, the state can no longer afford this with tax collection.
>>>>>
>>>>> As the crisis continues and California's credit rating
>>>>> deteriorates, the cost to the state of borrowing keeps rising - a
>>>>> process that could ultimately lead to bankruptcy.
>>>>
>>>>
>>>>
>>>
>>
>>
>>
>

The answer is NO. Its February and they still haven't run out of money,
however, I did.


Ron wrote:
> http://www.news.com.au/couriermail/s...78-954,00.html
>
>
> California will be out of money by February as huge debts mount
> Article from: The Australian
>
> By Chris Ayres in Los Angeles
>
> December 13, 2008 03:06am
>
> CALIFORNIA, one of the 10 largest economies in the world, will run out of
> money by February, causing "financial Armageddon", according to dire new
> budget projections.
>
> The state's debts are mounting at a rate of $US1.7 million ($2.5million)
> an hour.
>
> The de facto insolvency of the most populous US state - home to such
> economic engines as Silicon Valley, the Central Valley agricultural
> region, Hollywood, Napa Valley, the Long Beach ports and the defence
> research and production facilities of Los Angeles, San Diego and the
> Mojave Desert - would represent a new scale of catastrophe in a year that
> has seen financial markets and economies across the world implode.
>
> Treasurer Bill Lockyer has said that $US5billion of public works
> projects, including road and school construction, will have to be
> cancelled because the state's lenders are worried about an impending
> Iceland-style bankruptcy. California - which has a GDP of $US1.7 trillion
> - already has the worst credit rating of any of the 50US states, The
> Australian reports.
>
> He says "without a budget solution, state financing of infrastructure
> projects will stop".
>
> For California's Republican Governor, Arnold Schwarzenegger, the crisis
> represents a humiliating final act to his second term. Mr Schwarzenegger,
> 61, came to power in 2003 because of an almost identical financial
> calamity, which resulted in his Democratic predecessor, Gray Davis, being
> "recalled" from office.
>
> At the time, he promised an end to California's tax-and-spend policies
> and runaway expenses, yet over the past four years of his administration
> the state's budget has grown by 40 per cent to $US144.5 billion. After
> the housing crash, recession and credit crunch, the state can no longer
> afford this with tax collection.
>
> As the crisis continues and California's credit rating deteriorates, the
> cost to the state of borrowing keeps rising - a process that could
> ultimately lead to bankruptcy.