Thanks Bush/McCain - California Needs Emergency $7 Billion Loan To Meet Payroll

[Median Democrat]

I have to say that George Bush deserves serious consideration as the absolute worse President ever. McCain should deserve consideration as possibly the worst candidate ever, since he does not see the light, and abandon Bush's economic and foreign policies that have led to the largest state in the union in the position of not being able to meet payroll. Un-fucking-believable.

http://www.cbs47.tv/news/local/story.aspx?content_id=b3e82927-b398-43a2-96d5-d8f1043dd97d

/snip

Governor Arnold Schwarzenegger warns the Federal Government he may need an emergency loan worth billions. He says the current credit crisis is making it too hard to secure financing and the state could run out of money by the end of this month.

The Governor warns Secretary of Treasury Henry Paulson that if the bailout doesn't make things move fast, he will need a 7 billion dollar emergency loan. That's because the frozen credit market threatens our state's ability to do short term borrowing to pay for immediate expenses.

State Controller John Chiang estimates if there is no money in the state's bank account by the end of this month, the state will not be able to pay a scheduled 3 billion dollars to more than one thousand school districts and state services could come to a halt; including nursing homes, day care and state and local law enforcement.

/snip

[Heather MC]

1. I thought All the rich People were in California. Where did their money go?

Oh well, we would love to toss you a measly 7 billion, but we just gave Wall Street all out money, and we still have a war to pay for
and we already promised someone 4 million in wooden Arrows
soooo
fuck you Arnold


go make a stupid movie and sell it to china
I am sure it will only take a week for you to throw together a low budget movie with no script and just blowing up a lot of things, and the unlikely make out scene with a really hot chick


Edited to include :sarcasm: tag
Although I am serious about the crappy movies
the first Preditor was really good

[Median Democrat]

2. Wow, you sound like a Republican! People will lose their jobs and homes, but why should you care?

As noted in the original post, the folks who will be hit are state workers, law enforcement and teachers. Also, you do know that California votes solidly blue. So, perhaps you ought to consider joining Free Republic where folks share your same callous regard for the folks will feel the impact of such a shortfall. Arnold will do fine. The people who will go unpaid, not so much.

One thing to remember is that tax revenues are not received in a steady stream. Thus, in tight financial times, bonds are issued against the expected revenue stream from property and income taxes. Normally, these revenue bonds are issued as a short term obligation with a low interest rate without any fuss. However, with the credit market, even debt secured by tax revenues is not marketbale. Thus, while payroll expenses continue to be incurred, the expected revenues do not come in until taxes are paid.

[Heather MC]

7. I was trying to sound like a repuke, I was kidding, guess I am a little too good at it

[melody]

3. Seeing as how Californians pay for many of the smaller states

I wouldn't be so cocky were I you. Some states wouldn't have essential services without us evil Californians.

I'm a Californian and rich I am NOT.

[melody]

4. California can get it, one way or the other

I feel sorry for states with fewer resources.

[Median Democrat]

8. The Problem Here Is That There Is NO Short Term Credit Available

California is asking for debt that is secured by tax revenues, which is high quality. General Electric also had to take out a loan at 10% from Buffet even though General Electric is a pretty solid blue chip. The problem is that the credit markets have simply broken down, so it may not even matter if you have good credit.

[melody]

9. And if they have to generate emergency tax revenues, they do

That will cover police and survival services.

When there is no school and various other lovely things for a long period of time, perhaps Orange County will see things our way.

[Median Democrat]

10. I Spoke With A Republican ...

He was praising the free market, and I said, well left to its own devices, we would creep into a Depression without the bailout, as creditors hoard money, and no one receives any credit. I referred to the crash in the auto sales, and asked, "Should we just let the free market work that one out or should the government do something about the financial market?" Silence.

[justiceischeap]

5. Move along now, nothing to see here.

:sarcasm:

[PBS Poll-435]

6. One must wonder if Arnnie had figured his threat of "minimum wage payroll" of emplyees of the State

Into his budget.

WTF?