[EGPWS]

i.e. serious spending cuts need to be implemented to recover.

Anything else, in the minds of sensible people, will only exasperate the problem.

Don't you agree?

[FairOpinion]

I agree completely. Anything other than spending cuts will be a temporary "solution", which actually would make the long term prospects of the state worse.

Arnold said he wants to bring back business to CA -- that can only be done by giving them tax cuts and incentives, and keeping taxes low, which of course can only provide sufficient revenue to meet spending, if you cut spending.

As I and others pointed out in other thread, CA's problem is not a lack of revenue, but an out of control spending, which they were engaging in, as more revenue was coming in during the market boom. If they kept spending under control, instead of skyrocketing it, just because they got this temporary windfall ( a large fraction of their revenue came from capital gains taxes), we would never be in this situation.

That is why I get rather upset at the thought that we may end up with Bustamante as governor, who will turn CA into a third world type state, then I guess the US won't care if Mexico will buy it back for $1, f course Bustamante wants to hand over to Mexico, even without that.