Schwarzenegger still unsure of Californian cash flow

Calcutta News.Net
Sunday 5th October, 2008

Governor Arnold Schwarzenegger of California has reacted cautiously to the $700 billion Wall Street bailout package.

Schwarzenegger has predicted California will find the going tough, even with the rescue package imminent.

During a news conference in San Diego, he said: 'California's not out of the woods yet.'

Governor Schwarzenegger said he would convene a meeting on Wednesday with the four legislative leaders to discuss the state's financial situation.

He noted that even though it was a yearly occurrence for California to seek short-term loans, the situation would be especially precarious this year because the nation's credit market had seized up, causing Californian legislators to delay passing a budget for nearly three months.

He said the record-long budget impasse prevented the state from going to the bond market sooner.

The State Treasurer's Office has said California will run out of cash on October 29th unless it can secure short-term cash.

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