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In crafting the state budget, Gov. Davis and his legislative colleagues applied many of the same deceptive accounting techniques used in these corporate scandals.
Ouch! That has to hurt Davis in two ways. First, it is truthful and connects something that is hurting a lot of folks retirement acounts and therefore is transferring anger to Davis and second, it is pointing out to Davis and the Democrats why their budget (that counts so heavily on borrowed Wall Street funds,) may have a real problem.
Wall Street will look at the budget and then calculate its own cash flow for the state before it lends a dime and before analysts determine bond ratings. With the Merril Lynch New York State settlement, Wall Street will be much more careful to really look at things before it recommends buying bonds from California.
I think ENRON and the others simply copied the US Governments way of cooking the books, that is assuming of course there were some qualified people within the gov. who could do it. Look at the few heads of departments that have been caught using credit cards, ordering computers etc. for private use etc., those few represent the tip of the ice burg. Governor Davis and pals should not be re-elected peroid! They represent the worst in state government.