Arnold Schwarzenegger begs for a 7 Billon dollar loan in California
Shorter Arnold: Help Me!
Gov. Arnold Schwarzenegger in a letter Thursday night to Treasury Secretary Henry M. Paulson Jr. said that with credit markets essentially frozen, the state, like a slew of others and local governments nationwide, had no access to the short-term financing that normally support day-to-day operations.
"California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the Federal treasury for short-term financing," Mr. Schwarzenegger said in the letter, which was first reported by The Los Angeles Times.
Treasury officials said they were reviewing the letter.
As the nation's most populous state, California's precarious finances underscore the depths of the financial crisis. The emergency handout, the equivalent of $192 for each resident, would rival the federal government's bailout of New York City in 1975 as it teetered on bankruptcy.
So glad we recalled Gray Davis for this!
We will be seeing lots of folks with tin cups in hand as we drive to the poor house.
Watch for General Motors et al.
Brother can you spare a Billion.
california actually does this every year to make payroll before they start generating revenue for the fiscal year. typically its done in the private sector with the loan paid off quickly thereafter, unfortunately the frozen credit markets have forced the state to go to the federal government for the loan.
Maybe if they put up some collateral? What's the Governator's personal fortune valued at these days?
Some years ago, California had a lawsuit against energy companies for about $9 Billion because of the tricks they pulled that caused many black outs, and vaporized the budget surplus due to the artificially inflated energy prices. I don't know what the happened to it after Arnold, a friend of energy companies, became governor.
http://news.google.com/archivesearch?q=enron+...
Decriminalize marijuana. There's your $7 billion.
Yet another Republican begging for government money. Aren't conservatives supposed to support a free market, a smaller government, more personal responsibility, and less socialized spending?
Oh, wait...what am I thinking...that's only true in Neverland or in Oz. In America, it's become the Republican motto: "Give us more taxpayer money because we don't know a go**amn thing about economics or governing."
line starts here
tyler82 @ 6:
so true
I'm pretty sure this is only happening because California can't seem to get a budget passed......or did they?
Schwarzenbegger.
tyler82 @ 6:
Ooooh you stole it from me!!
Great Minds!..
Indeed..
It is much more then 7 billion too...
Hello,
This is just the tip of the iceberg. Soon we'll have a nearly complete meltdown on our hands.
Already, almost nobody in the construction business is working. No work, no taxes being paid. Instead, we have a tax drain on our hands.
Meanwhile, the collapsed housing market results in lower property tax receipts to local governments, through simple non-payment on foreclosed houses, and reappraisals to reflect the 40 percent, at least, reduction of value on the ones that aren't foreclosed.
So state and local governments can't meet their budget projections, and government necessarily contracts, putting lots of government employees in unemployment lines with the construction guys.
None of them are paying taxes, instead they draw from the drying up government wells. Business at county hospitals booms.
But business at retailers doesn't, because the unemployed aren't buying much and the employed are husbanding their resources and sticking with the old projection TV instead of upgrading.
The retailers cut payroll, so more people start draining government resources instead of paying taxes.
Government cuts again, swelling the ranks of the unemployed. More people can't pay their property taxes or their mortgage payments, so the whole thing goes down another notch.
And so on.
Carlos
Obama better practice saying, "No!"
A lot of parties are gonna come calling on Prez Barry with their hands out.
And why not?
The good folks of CA, for example, have a much more appealing petition than the Wall Street fucks about to be given a big kiss by Hank Paulson.
Spend And Tax politicians?
This is why the states where intended to take care of themselves and not be at the mercy of a central government, having to beg for handouts.
The games Arnies plays. Republican set up Gray Davis to get kicked out while positioning their puppet Arnie in his place. It worked well but Arnie is an idiot. Now a Govenor who really wanted the loan would have asked when the White House was bailing out Leahman Bros. but Arnie waited until he knew he wouldn't get the loan. California has a bill to tax shippers who dock in CA. Sarah Palin wrote Arnie and told him not to tax the ships and Arnie is do as he's ordered. Arnie is positioning himself for a job either with Republicans or Democrats. Maria has to find Arnie a job because they can't keep borrowing from the Family and selling the goods.
silly arnold, tax revenue is not for the people... it´s for bailing out failed banks and to keep the rotting corpse of capitalism hobbling along...
Let him make a movie or two as sequels to predator, terminator, etc.... and donate HIS money to the state's coffer... Lead by example
hahahahhaha... yeah..... right....
Grab your paddles folks!
Despite the Obama, McCain, Pelosi and Bush kumbaya moment yesterday, that 700 Billion ain't goin to plug the whole hole.
Better get into the lifeboats.
and i recommend stocking up on canned foods...
It is only the beginning. Cali is bankrupt many times over.
I live on a NYS pension. I wonder what's left of it with the market tanking.
The fate of the global credit mkts was in the hands of a bunch of Virgil Goode's on the
right who finally found their very conservative small Govn't conscience after 6 freaking
yrs of porking and stealing and spending like there was no tomorrow. Then you have
the their complimentary opposites on the left who never got over the 60's & 70's and will
be living there for another 10 generations b/c, for them, time stands still, or at least they
think it does.
BTW, all those guys in prison who were waiting for society to break down
and who did their best to make it so, will finally have their wishes come true. They think
their time has finally come...wrong again.
Maybe if California got to keep it's tax dollars insted of subsiding most of the dear 'Ol Southland they wouldn't be in this Spare Me Some Billions pickle.
The States are lining up for socialism.
Americans are buying ammo and getting ready for the collapse of America:
http://www.appeal-democrat.com/common/printer/view.php?db=marysville&id=...
20 Johnny2Bad Says: Grab your paddles folks!
Despite the Obama, McCain, Pelosi and Bush kumbaya moment yesterday, that 700 Billion ain’t goin to plug the whole hole.
Better get into the lifeboats.
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Oh, darn, I thought you were getting kinky.
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Don't make me behg...
I'm sure that's something Maria is used to hearing.
"Treasury officials said they were reviewing the letter."
I love it. iSN`T THAT THE AMOUNT THAT ENRON AND KENNY BOY RIPPED OF FROM sunny Cal.? Oh,no,it was more like 9 billion.
And remember that Bush hardly knew "Kenny Boy" even though he gave him the nickname.
Impeach,inprison,indict
Maybe Arnold can go down to Wall Street and 'terminate' those greedy fucks.
Gee, and we were all told Ahnold would be the second-coming...that kicking Davis out would solve all the fiscal problems. Yet, things are no better now? Really. Could it have all been (shhhhh....) a lie?
Hyuh mee nyow, beeleef mee lay-tuh indeed.
California will not get a dime from the feds.
The Republicans in the CA legislature would not allow any tax increases to balance the budget. It's part of their ideological work to kill social programs by starving the government for funding.
The Republicans in DC know that CA is an Obama state so there is no incentive to give money to CA. Nor would most US taxpayers support helping CA, we do not have a good rep in general public
I think this is the last time, for a generation or two, that a movie start will sit in the governors chair in CA. It started with Ronnie and will end with Arnold.
Looks like Urinald Schwarzenggroper will be the first Gov. to cede jurisdiction of his state to the "District of Columbia" ! ...and he wasnt ever born in the USA!
could we be witnessing the first "fetal twitchings" of the birth of a new nation?
The American people have been raped, and are pregnant...we must abort!
somebody cut Urinald's umbilical cord immediately!
Arnold Schwarzenegger is not a good governor.
He has borrowed and borrowed and borrowed and pretended to be fiscally responsible.
His republican co-horts in the legislature, are extortionists of the worst kind.
California doesn't need more pain, after the dot-com implosion, the Enron ripoff, and 8 years of Bush, but Schwarzenegger came to power in a corrupt recall effort against Gray Davis, and his comeuppance should be his own recall.
Alice X - (Click Here for Nader on the 'Bailout' Bill) - status quObama - change you can pretend in - @ 2:
Congress already gave all three car companies their handout last week-$25bn.
They were very quiet about it.
http://www.latimes.com/business/la-fi-calif3-2008oct03,0,5726760.story
This is a revenue anticipation loan, not a bail out or a hand out. The only thing abnormal here is that the usual private sources of lending is shut down tight.
This has been the plan all along. Just like norquist said he would like to drown America in a bathtub. He was ask what it would be like without roads, bridges, he said it would not bother him he would just fly over it.
That is what republicans think of America and it's people. The republican voter is mostly to stupid and willing to believe to see what is going on.
There is one certainty, in my mind, when the Country maxes the credit card, which it will do, we will be out of choices.
We will then massively increase taxes. A high ramp progressive tax starting at the BOTTOM.
It will not be borrow and spend.
It will not be borrow, tax and spend.
It will not be tax and spend. The money has already been spent.
It will be tax and tax some more.
It is not a matter of if, it is when.
When we are bankrupt. It may already be now.
Whoever is sitting in the Oval Office will be feeling some serious heat.
someguy @ 10:
The budget was passed.
I live here and I can attest to the fact that we are already taxed to death. sales tax, gas tax, personal income tax, property tax, car tax, license tax and I coudl go on.
We are all wondering where the money is going. Arnie cut schools, hospitals and help for the disables. So, if it's not going to schools, roads and social programs, where the eff is it going?
Damien @ 4:
The low number is $100 million. The high number is $900 million.
John Tighe @ 5:
It was settled for pennies on the dollar. Sempra $5.7 million. Chump change.
http://www.signonsandiego.com/uniontrib/20061014/news_1b14sempra.html
Arnie did exactly what he was told to do. In addition, he just vetoed a slew of bills, including a single payor health program, in which he cited a totally unrelated statistic to justify himself so the insurance companies would continue to get their oral pleasure from him.
But it's OK to drive with your yip yip dog on your lap.
19 txlvn Says: Let him make a movie or two as sequels to predator, terminator, etc…. and donate HIS money to the state’s coffer… Lead by example
hahahahhaha… yeah….. right….
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I can see it now:
Udo Kier
http://torrents.bittorrent.com/image/09b4d0175df45caceccf3a9f75fab166e66...
Isababelle Adjani
http://www.artic.edu/webspaces/siskelfilmcenter/2007/february/i/2/nosfer...
Miley Cyrus
http://www.babble.com/CS/blogs/famecrawler/2007/11/01-07/2007-6-23-hanna...
And Arnold Schwartzenegger in his greatest role ever
http://www.ifbb.com/halloffame/1999/ArnoldSchwarzenegger2.jpg
AS
Grandpa, Lilly, Marilyn and Herman Munster.
The people of California ought to be ashamed of defaulting on all your house loans.
I think Urinald should give a big speech and ask everyone to redeem themselves by paying double state taxes this year.
star @ 36:
http://www.ebudget.ca.gov/
I'd read it and if I wasn't already planning on getting out of this ridiculously over-inflated state. Go somewhere where I can find a house less than $400,000 that's not a 1 bedroom shack in East L.A. and still find a decent paying job. You know, like Mayberry or Walton's Mountain.
Isabelle Adjani.
I didn't know I stuttered when I type.
Kind of like the Monster of Arrrrggghhh.
Enough with these borrow and spend republicans!
Heaven forbid they tax currently living people who have jobs and make money. Why do that when you can borrow the money and have people of the future pay for it! Spend away!
milquetoast @ 40:
And the millions who rent who have seen their rents go up by 30% in just the last 5 years? Not to mention all the single people who get little to none in tax breaks and pay the highest state taxes out of their pockets (much of which goes to social programs meant for families). There is no fairness.
Your proposal would put additional hardship on the working classes who can't afford a house and leave many out on the street or sleeping on their sister's sofa.
Got a Plan B?
What an economic girlyman.
star @ 36:
The great Urinal has dried up...(very volatile)...Evaporated so to speak...you cannot see where it went, but if you follow gov. Schwartzengroper,...(as he grovels for a new teat)...you can see the last trickles from where it came from!
economic and financial collapse really simplifies it for those of us who like to play the follow the money game ...doesnt it!
does anyone see the FED printing presses over there?
rduke @ 12:
The problem is drugs are regulated through the federal government. A state law wont cut it or keep the feds from prosecuting.
It's a shame the people that are in the whitehouse are there now.
It's a shame that after ronny reagan people didn't wise up and see what they were doing.
It's going to take a long time to straighten out this mess.
This crosses party lines there are some dems that are in on this also. It's been out of control since they before they started the K street project, but has really blossomed since and become to perverted to allow it's existance any longer. The question is how to destroy this network of preverted thieves?
The stupid republican mantra of "no new taxes" and "don't raise taxes" has got to go. I'm a resident of Kalifournia, add a nickel to every purchase via sales tax, $0.05 on every taxable purchase. We'd clear up that budget deficit in what, 120 days? The point is that in order to provide programs and services the state government requires tax revenue, as the ticket to provide those services cost more, more tax revenue is necessary. Were state republicans home-schooled in Santee perhaps? Of course address wasteful spending, any boob could tackle that one but WTF, cut teachers, reduce salaries, drop health care programs? How long can the mantra go on before everybody but the luxury tax class gets a clue? I have to give a tiny, tiny crumb of credit to Arnold for attempting to herd the idiots of his party in the state legislature. Too bad he can't use the chain gun or an Uzi 9mm carbine to get people motivated. And don't even get me started with the incarcerated. Put the violent offenders/lifers to work at least 8 hours a day on an “energy generating bicycle”! Best job training / rehab / pay back your debt to society solution in the world for those types, no extra staff necessary as a matter of fact, more staff might be readily affordable depending on the energy output to the state grid! Why violent criminals get an all expense paid "vacation" (used loosely) in a gang/crime ridden sanctuary is ciompletely inexcusable.
Doh, one year for not spell checking!
Decriminalize marijuana-then pass out free samples!
Why not the white collar criminals also?
Credit Crunch hitting US Colleges:
NY Times: Bank Limits Fund Access by Colleges, Inciting Fears
james Ratliff @ 52:
You're right, why not?! See, everybody wins. The "energy generating bicycle" is truly green, we already feed and house the fuckers, let's get something for our tax dollars!
As stated up thread, RECALL HIM.
From petition to recall Davis in '03:
And I think the shortfall was about $4 billion that he was getting hammered for. But as we all know, IOKIYAR
Does Arnold think that California is a bank or something?
RayFerd @ 55:
Impeach Bush while you're at it.
Oh yeah and here's another real stroke of genius, "Securitize predicted future lottery revenue"! Hello? Is this thing on? Raise taxes..
Zenrage @ 47:
Meh?
You think California is the only state that would benefit?..
Cannabis is the number one cash crop in these here United States.
End the Prohibition on it.
Stop arresting a million people a year for having it.
Stop wasting BILLIONS on the Prohibition.. Billions on Jailing...
Legalize it... and Tax it like Alcohol...
Simple.
Keep cutting taxes and you run out of money to pay for things the people want and demand. No such thing as a free lunch. Tell the GOPers to go screw themselves and raise the taxes to cover the bills.
rduke @ 59:
You see the problem is that legalizing it would hurt the drug companies and their lobby to much not to mention the for profit prison system they have set up on the anti pot laws. These are greedy bastards that don't wany you to share in the profits.
rduke @ 12:
tyler82 @ 6:
Decriminalize marijuana. There’s your $7 billion.
Ooooh you stole it from me!!
Great Minds!..
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Duuuddes
That was Comet you just snorted.
Where's the Twinkies and Picante Sauce?
So, like, when's the recall campaign gonna start?
Karma's a bitch, Arnie.
Just raise the GD income taxes, Arnold. Let the ruling class and the wealthy pony up and pay their fair shares for once.
I am sure republicans tripping over them selves for a piece of that tax money they stole from our grandchildren, they should be ashamed. I need duh money to help my business buds keep there bidness gowin, we need to keep the support the troops ribbon factories open.
Californians are going to have to make some tough choices.
They failed to do that in their budget negotiations only weeks before.
I am 86 years old and I don't like Arnold.
The stupid republican mantra of “no new taxes” and “don’t raise taxes” has got to go. I’m a resident of Kalifournia, add a nickel to every purchase via sales tax, $0.05 on every taxable purchase. We’d clear up that budget deficit in what, 120 days? The point is that in order to provide programs and services the state government requires tax revenue, as the ticket to provide those services cost more, more tax revenue is necessary.
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The more programs, the less people have left from their income to pay for other things. A viscious cycle. Then we need a new program, because people don't have money for X, because increased taxes took money they needed to pay for X.
I live in California, too. $.05 on top of the current sales tax and people will spend less money on purchases.
People will still buy toilet paper, but forego other things.
The economy picks up, the state gains a surplus, the polititians want more programs to spend the surplus on.
Then the next recession hits. Then they bash Prop. 13 as causing the problem. Prop. 13 didn't cause legislators to create new programs in a time of surplus.
Schwarzenegger is not yet a true cut [taxes] and spend [borrowed money] neocon. If he were, he would listen to them as they claim that cutting taxes actually increaes revenue
If there's one thing that Republican politicians agree on, it's that slashing taxes brings the government more money. "You cut taxes, and the tax revenues increase," President Bush said in a speech last year. Keeping taxes low, Vice President Dick Cheney explained in a recent interview, "does produce more revenue for the Federal Government." Presidential candidate John McCain declared in March that "tax cuts ... as we all know, increase revenues." His rival Rudy Giuliani couldn't agree more. "I know that reducing taxes produces more revenues," he intones in a new TV ad.
So, have these clowns learned nothing?
If there's one thing that economists agree on, it's that these claims are false.
ref
I forgot to add in California, and I should have:
Among the hardest hit by the budget reductions voted on today are doctors who provide healthcare for the poor. Their reimbursement rates will fall by 10%. Activists say the rates are so low that many poor Californians can’t find physicians who accept Medi-Cal, the state’s healthcare program for the poor.
Also targeted are schools, which will lose $506 million. Lawmakers say the cut will not affect classroom instruction, an assertion that school officials dispute.
One group that emerged unscathed is yacht owners. Democrats had hoped to raise $26 million in revenue by closing a loophole that allows the boat owners, as well as owners of airplanes and recreational vehicles, to avoid paying sales tax by keeping their newly purchased vessels out of state for 90 days. Republicans in the Assembly blocked the proposal, saying it was a tax hike that would ultimately drive down yacht sales.
ref
someguy @ 10:
states and municipalities use the stock market hedge funds to invest their local taxes, as happened in Florida last year with that run.
IF people in cal. would look back it was Gary davis that started this
look in (366 billion outrage ) this will set the story straight .
WE can not over tax the private sector to paid for a job for some
bureaucrats brother in law and have them sit all day and pick his nose
for a p.e.r.s. and then give him a early payout . your pension money
was in the hedge funds who set that in ,state,county, city , worker.
Wake in ? no more coffee
rotflmmfao...so much for your wisdom of having waived that 9 billion dollar enron reimbursement for the 2000 energy crisis price goughing?
wish you had it now, don't ya? Real smart move duffus, now watch the neocons squirm as they are bloodily beaten on November 4th.
Any action the government takes to help ease the financial crisis will only treat the symptoms, not the cause. Until we treat the cause we will see one crisis after another.
This crisis is a lesson showing us how interconnected all the worlds finances are. Our greed, self interest and egoistic attitudes are the cause of the crisis and the only cure is to change these internal attitudes.
Michael Laitman expands on the problem and offers solutions in this blog item
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