Tuesday, October 7, 2008

Fear Factor

SACRAMENTO, Calif. --

The California state budget signed just last month is already in trouble because of the sinking economy and financial turmoil.

The worldwide credit crunch is endangering California's plans for what would usually be a routine 7 billion dollar loan to even out the tax flow into the state treasury.

The state is looking for options because of the tight credit markets.

Gov. Arnold Schwarzenegger is meeting with legislative leaders Wednesday to talk about what can be done. He and state legislative leaders may consider a special session this fall to deal with a new budget mess.


and if that isn't enough financial news to frustrate you:


Dow Plunges Despite Government Efforts
President Says Bailout Will Take Time

POSTED: 4:38 am PDT October 7, 2008
UPDATED: 1:17 pm PDT October 7, 2008

Wall Street has had yet another dismal day, extending its heavy losses as investors' worries about the financial sector wiped out early enthusiasm over the Federal Reserve's efforts to inject confidence into the credit markets. Trading remained fractious and grew more turbulent in the last hour, with the Dow Jones industrial average losing more than 500 points and all the major indexes falling more than 5 percent.

This latest plunge, which followed a big drop on Monday, came after Bank of America Corp. reported its third-quarter profits fell 68 percent. The market's gloom was also fed by comments from Fed Chairman Ben Bernanke, who warned that the financial crisis could prolong the difficulty the economy is facing.

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