[Robert357]

The above is supplied for academic interest and discussion and I suggest you click on the URL to read the entire article

What I find interesting regarding the California Power Crisis is that Moody's view of the lack of a Power Bond is as a liquidity problem with the state and not as a fundamental difficulty. They do provide some interesting insights into what next years budget debates may look like and they point out that the K-12 has the highest priority on the state's budget.

Their long term outlook for the state is not too promising. It should be interesting to watch how Gov Davis tries to spin this evaluation.

[Robert357]

Thought you might enjoy reading the source document rather than the newspaper translation.

[MistrX]

Somehow, the CA Democrat party has convinced the voters that bond issues don't cost taxpayers anything. I live in a state populated by brain-dead voters.

[EternalHope]

This is very big financial news.

That the cost of new borrowing for California just went up is just the tip of the iceberg. If Moody's is right, California will have trouble even coming close to balancing its budget next year. A recession will make that even harder.

In other words, a further downgrade is likely next year. The problem is, California debt is already close to "junk bond" status. Once it enters that category, the cost of debt skyrockets.

California is in trouble, and that trouble is likely to get worse.

[snopercod]

I love the language of that post. It's so good to know that there are some people of integrity left in America who don't have to mince words just to keep their jobs.

Thanks for the flag.

[junta]

I might be a bit negative, but as a non-Californian (I was stationed there 82-84) I see your state as one with a burgeoning Third World sub-culture with a First World welfare system all predicated on the myths of the Left and of course totally bankrupt (perhaps literally) of any logic. To sum it up you have problems that could quickly spiral out of control unless the usual suspects, dogooders, ethnic hustlers, pork barrelers are not reigned in by some conserving force.