I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???
Sunday, 5 October 2008
Arnold Schwarzenegger has warned that California may need an emergency loan of up to $7 billion (£3.9 billion) from the federal government
In a letter sent on Thursday to Henry Paulson, the US Treasury Secretary, Mr Schwarzenegger, California's governor, made clear that his state was running out of money because its usual borrowing channels had suddenly closed.
He made clear there would be grave consequences for the ability of American states to keep providing basic services if the $700 billion Wall Street bailout plan is not passed by the US House of Representatives.
That even America's richest and most populous state should face such severe financial problems illustrates the extent to which credit markets have seized up in the two weeks since the failure of the investment bank Lehman Brothers.
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