California State Running Out Of Cash

With credit frozen, California had enough cash reserves to last until Oct. 28, said Tom Dresslar, a spokesman for Mr. Lockyer. As a result, the state was prepared to seek initial loans of between $1.5 billion and $2 billion to cover expenses including payrolls for thousands of teachers, police, firefighters and other public employees. Mr. Dresslar said $7 billion in federal loans might be needed before next spring, when new state tax revenue will be flowing. <Wall Street Journal>

HOW ON EARTH THE STATE THAT GENERATES THE MOST TAXES CAN RUN OUT OF MONEY?! They ranked first in the 2007 Federal tax revenue by state!

"It is daunting that California, the eighth-largest economy in the world, cannot obtain financing in the normal course of its business to bridge our annual lag between expenditures and revenues," Gov. Arnold Schwarzenegger wrote in a letter to the state's congressional delegation in Washington. <LA Times>

Caught CBS evening news and on a phone interview with Bill Lockyer, California State Treasurer, said the state government plans to seek help from CHINA if their SOS call to Bill Gates didn't work out.

THEY WANT CHINA TO SAVE CALIFORNIA'S ASSES!! I cannot believe this...