Monday, February 16, 2009

Total Recall: Arnie Needs to Go

In 2003 Gray Davis was subject to a "recall" and was forced out of office. Why? Because of his poor handling of California state finances. That was peanuts compared to the situation Govenor Schwarzenegger is in and the looming disaster:
After negotiating nonstop from Saturday afternoon until late Sunday night on a series of budget bills that would have closed a projected $41 billion deficit, state lawmakers failed to get enough votes to close the deal and adjourned. They returned to the capital late Monday morning only to adjourn until the afternoon, though it was far from clear whether they would be able to reach a deal.

California has also lost access to much of the credit markets, nearly unheard of among state municipal bond issuers. Recently, Standard & Poor’s downgraded the state’s bond rating to the lowest in the nation.

California’s woes will almost certainly leave a jagged fiscal scar on the nation’s most populous state, an outgrowth of the financial triptych of above-average unemployment, high foreclosure rates and plummeting tax revenues, and the state’s unusual budgeting practices.

It's only a matter of time before they beg for a bailout.

It brings to mind when he shot Sharon Stone, playing his wife, in Total Recall: Consider that a divorce.


  1. California tends to lead the nation in trend setting. Bankruptcy is not a very nice trend to be starting.

  2. Indeed. Also with their focus on irrelavent issues like making the strongest environmental regulations. It added to them going broke, and took their eye off the ball. I hope others learn from it.