[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[AdamSelene235]

El Salvador's debt is far more attractive.

[Dog Gone]

Davis can fool the press and he can fool the voters, but he can't fool Wall Street.

It will be interesting to watch what happens.

[Robert357]

California already is rolling over debt. A $7.5 billion short-term loan from last June was paid off in November by $12.5 billion in new loans. Those loans, in turn, must be paid off this June.

I have been involved with many bond issues, notes, bond anticipation notes and refinancings by electric utilities. Note how a $7.5 billion loan is now becoming part of a $12.5 billion loan. Can you imagine what $5 (5=12.5-7.5) billion in social program cuts looks like? Wall Street can and they will demand to see those kind of cuts in the budget or sources of taxes that will pay off both the increasing debt and the base debt. The legislature is going to need Wall Street money to keep going and Wall Street will lend it, but there will be a huge and growing cost.

The point is that by delaying things, the legislature is just making their choices that much more painful. Wall Street will give the Governor and Legislature enough rope to let them all politically hang themselves. Actually, I think that has already occurred. The perps just don't know it yet.