Street Speculator

California is going broke, or rather will run out of money at the end of the month. They are unable to get short term financing for their daily government functions, which includes money for the school system.

Governor Schwarzenegger wrote a letter to Treasury Secretary Paulson letting him know of the fiscal situation. The letter also contained a memo that CA may have to tap the Treasury in the event the credit markets remain frozen.

Read the LA Times article (CA may need emergency $7 billion loan)