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Fiorina: California's inability to declare bankruptcy a 'technicality'
SaC bee ^ | 2/10/10 | Jack Chang

Posted on 02/10/2010 4:41:39 PM PST by NormsRevenge

Republican U.S. Senate candidate Carly Fiorina said Wednesday that she knew states are prohibited by federal law from declaring bankruptcy despite her comments the day before that bankruptcy "should always be considered" as an answer to California's fiscal problems.

Fiorina also called the fact that California can't declare bankruptcy a "technicality." Her comments Tuesday, made in the city of Colton, has spurred speculation about whether she was familiar with the federal law.

The Riverside Press-Enterprise quoted Fiorina saying, ""Whether that is the right approach now, I don't know. I think bankruptcy, as a possibility, at the very least focuses the mind on what has to be done to salvage a situation."

When asked by The Bee on Wednesday whether she knew states couldn't declare bankruptcy, Fiorina answered, "Sure, I knew, but what cold comfort is that to all these California voters who may not know that technicality but who are sitting here knowing that by any common-sense definition, this state can't pay its bills.

(Excerpt) Read more at sacbee.com ...


TOPICS: Business/Economy; Politics/Elections; US: California
KEYWORDS: bankruptcy; california; fiorina; insolvency; technicality
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1 posted on 02/10/2010 4:41:39 PM PST by NormsRevenge
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The more appropriate word may be ‘insolvency’.


2 posted on 02/10/2010 4:43:20 PM PST by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Chuck DeVore - CA Senator. Believe.)
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To: NormsRevenge

Once a sales bimbo, always a sales bimbo.

Come on repubs, we can do far, far better.

Look closely at what she did to a formerly impressive electronics company...that now gets its profits from printer ink.


3 posted on 02/10/2010 4:43:42 PM PST by Da Coyote
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To: NormsRevenge

Perhaps the CA legislature should think about cutting spending.


4 posted on 02/10/2010 4:43:54 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Da Coyote

“Look closely at what she did to a formerly impressive electronics company...that now gets its profits from printer ink.”

Yeah but she was rated as one of the worlds smartest and most powerful women.

really


5 posted on 02/10/2010 4:46:42 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: NormsRevenge

I can’t wait to see her TV ad for this.


6 posted on 02/10/2010 4:48:05 PM PST by Clintonfatigued (Liberal sacred cows make great hamburger)
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To: NormsRevenge
'The more appropriate word may be ‘insolvency’."

I doubt that was the word she was searching for, but that is certainly the right word. I don't see how California can become anything other than insolvent in the coming years, perhaps even months.

Strangely enough, California is an example of populism run amok. The non-discretionary spending that they are now saddled with comes in large part from their ballot initiatives. They've got a mess on their hands, with no real way of solving it. Of course, that ignores the fact that the strength of the government service unions keeps them from solving their problems, even if the ballot initiatives weren't there.

Call it what you want, insolvency, bankruptcy whatever - it's still an unavoidable financial Armageddon coming down the pike.

7 posted on 02/10/2010 4:50:13 PM PST by OldDeckHand
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To: NormsRevenge

Carly the HP destroyer is a moron.
But is she a bigger moron than Boxer? I am beginning to think its a toss up.


8 posted on 02/10/2010 4:50:56 PM PST by svcw (If you are going to quote the Bible know what you are quoting.)
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To: Clintonfatigued

When CA defaults on its bills and bonds it will be bankrupt. Legal or not.
If they actually think they can force the state to raise taxes to cover it..they are wrong. The people won’t pay more.


9 posted on 02/10/2010 4:50:59 PM PST by Oldexpat
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To: NormsRevenge

I had the displeasure of meeting her once in Boise. Trust me, she is an idiot...


10 posted on 02/10/2010 4:53:19 PM PST by babygene (Figures don't lie, but liars can figure...)
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To: OldDeckHand

What you are missing is that all those spending initiatives may be suspended by the same 2/3 vote in the Legislature that is needed to pass a budget. This is an inconvenient fact that the Legislature likes to ignore so that they have a scapegoat. The fault lies solely with the rate they have grown spending beyond all reason. Under Arnold, spending grew faster than under Davis.


11 posted on 02/10/2010 5:04:10 PM PST by calif_reaganite
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To: NormsRevenge

Chuck Devore is the man for the job.


12 posted on 02/10/2010 5:05:22 PM PST by Las Vegas Ron ("Because without America, there is no free world" - Canada Free Press - MSM where are you?)
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To: calif_reaganite
"What you are missing is that all those spending initiatives may be suspended by the same 2/3 vote in the Legislature that is needed to pass a budget"

I must admit that I haven't lived in California in over a decade, but I thought at least some of those initiatives couldn't be "de-funded" with anything short of a Constitutional convention. If I'm wrong, I apologize.

13 posted on 02/10/2010 5:12:17 PM PST by OldDeckHand
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To: svcw; Da Coyote

Compare the ticker for HP vs. DELL. The strategic changes Fiorina was most criticized for have paid off hugely.


14 posted on 02/10/2010 5:14:56 PM PST by USFRIENDINVICTORIA
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To: svcw

Carly is a joke in the Silicon Valley and every technology CEO out there. She thinks she has a chance?
Really?

Maybe there should be a prerequisite to running for Congress, Senate, President or Governor...
Successfully and profitablly running a major corporation.
WITHOUT BEING IN THE RED.


15 posted on 02/10/2010 5:15:42 PM PST by nagdt ("speak the truth but leave immediately afterward")
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To: NormsRevenge

She’s right. Congress can easily change that law. And even if they don’t, CA can simply refuse to pay its debts.


16 posted on 02/10/2010 5:19:42 PM PST by Brilliant
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To: NormsRevenge

I don’t think Carly is getting *any* traction. None, zero, at least as far as I can see.


17 posted on 02/10/2010 5:23:26 PM PST by Attention Surplus Disorder (Voters who thought their ship came in with 0bama are on their own Titanic.)
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To: NormsRevenge; All
The most obvious conclusion from the HP fiasco is that Carly is all about Carly.

California beware. The HP board finally paid her a gazillion dollars to go away; it may not be so easy or cheap the next time.
18 posted on 02/10/2010 5:25:56 PM PST by CzarChasm (My opinion. No charge.)
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To: Oldexpat
When CA defaults on its bills and bonds it will be bankrupt. Legal or not.

California can't be forcefully liquidated or restructured is the point. Nobody can lay claim to assets to satisfy debts after default which is what bankruptcy is.

19 posted on 02/10/2010 5:32:30 PM PST by Poison Pill
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To: USFRIENDINVICTORIA

She destroyed a viable slow growth steady company.


20 posted on 02/10/2010 5:32:48 PM PST by svcw (If you are going to quote the Bible know what you are quoting.)
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