Schwarzenegger to U.S.: State may need $7-billion loan

**Chuckiechan** · October 3rd, 2008, 10:34 AM

Schwarzenegger to U.S.: State may need $7-billion loan - Los Angeles Times

California politics aside, this is a snapshot of what a "Liquidity crisis" is: the State does not have the cash flow to proceed with "commitments", but can't borrow the money to continue.

And that's why we need to get something done, quickly.

**tony_j15** · October 3rd, 2008, 01:00 PM

So you want my tax dollars to bail you out of a mess your state legislature created? GTFO!

**Chuckiechan** · October 3rd, 2008, 08:06 PM

Vee Vant you to send your money to Collieforn-e-a...!

Actually, it's just a bridge loan. But given California's credit rating, I wouldn't loan to us either!

**pickel** · October 3rd, 2008, 10:26 PM

Originally Posted by Chuckiechan

Vee Vant you to send your money to Collieforn-e-a...!

Actually, it's just a bridge loan. But given California's credit rating, I wouldn't loan to us either!

Why not build a bridge to somewhere ???? One that starts in the Mission District and went halfway over the Bay, then let the citizens take a nice Sunday walk to Nowhere. I'd chip in for that

That would be inline with and take a remedial step with YOUR "Liquidity crisis".

**Chuckiechan** · October 4th, 2008, 01:26 AM

Don't forget the "one way" bridge to Mexico... A country by the way that has a lot at stake in this election. The Democrats are not going to continue enforcement in the work place or the border.

**MTAtech** · October 4th, 2008, 09:10 AM

I'm confused. Why does a state need to borrow money for normal operations? Isn't it supposed to have the tax money in the treasury to pay for these expenditures?

**Chuckiechan** · October 4th, 2008, 10:22 AM

I'm confused. Why does a state need to borrow money for normal operations? Isn't it supposed to have the tax money in the treasury to pay for these expenditures?

The high taxes have led to a fall of of tax revenue, combined with higher income people who can leave the state doing so - moving to lower tax states like Nevada, Arizona, New Mexico. This leave California with a higher percentage of "low earners with high needs", and the budget is "busted". Too many people with their hand in the taxpayers pockets.

The loan request is because the banks are not buying bonds right now, and the Fed can make it happen.

**MTAtech** · October 4th, 2008, 11:19 AM

moving to lower tax states like Nevada, Arizona, New Mexico.

I imagine they would do that if the only thing that they cared about was taxes. Yes, I can move from NYC to Mississippi to escape high taxes but I think there are other benefits NYC provides that are more important than taxes. I'm sure that's the case with CA too.

I think it goes beyond rich people fleeing CA.

**Chuckiechan** · October 4th, 2008, 01:20 PM

I imagine they would do that if the only thing that they cared about was taxes.

Those states besides being lower taxes, have lower crime, better law enforcement, better schools, and more competitive housing.

Generally, quality of life is better. The internet has enabled lots of people to move their base of operations into lower tax states, and just keep the bare minimum in California.

Example: A family member is selling advertising in a Mexican publication, to get non-Mexican businesses to include Mexican language descriptions. IOW, get Mexicans to see your ad in the Mexican publication - no sense in excluding customers, right?

Wrong! She has encountered heavy racism from the Anglo community - She is white, BTW. (in the enlightened Bay Area, no less!). A lot of people are just sick of a government that taxes the crap out of them, and then pisses it away on "services" to illegal aliens. The response she gets is basically, "I don't want them in here!"

BTW, if you could take your job and 75% of your paycheck to Mississippi, would you? You'd live like a king.

**Pexster** · October 4th, 2008, 02:15 PM

California has been getting these short-term loans for years in anticipation of the huge holiday sales tax revenue bumps. But this just points out the glaring problem with Paulson's latest solution (the same problem all his previous "solutions" had) -- allowing banks to clean up their balance sheets does not mean that they will be lending money in the volumes required to stabilize the economy. For the life of me, I don't understand why all of Paulson's efforts have had no strings attached. The banks have been taking advantage of all his "carrots," but then just sitting on them.

**pickel** · October 4th, 2008, 09:55 PM

Originally Posted by MTAtech

I imagine they would do that if the only thing that they cared about was taxes. Yes, I can move from NYC to Mississippi to escape high taxes but I think there are other benefits NYC provides that are more important than taxes. I'm sure that's the case with CA too.

I think it goes beyond rich people fleeing CA.

Think again, MTA

Road and bridge privilege tax

2008 Maxima....$1128.75

2008 Altima......$840.98

Come on Down