[tabs]

There is one little fact that you are forgetting. September 11, 2001. Exactly what did the Fed do? They dropped interest rates 7 time to a rate of 1%. What did GM do? Introduce 0% financing. What did the Fed do the week of 911? Lent European Banks 80B. Why because the abyss opened up and exposed the fact that the financial system in the world is a house of cards.....Now why would this effect a run up in the deficit? Answer what has been the tried and true method of avoiding depressions and recessions since the 1930's. INCREASING FEDERAL SPENDING. ACHT ZOOOOO....Everything that is going on today in the financial markets can be linked back to 911. Nine eleven was the first crisis of liquidity.......Further ArnHold put 3 Propositions on the Ballet in CA after he got elected. The Civil Service Unions spent around 40M to defeat them, what is ironic is that the people voted down the very reform that ArnHold promised to deliver if he got elected. After that defeat ArnHold has just been going along with the program........The thing that sank CA was not that the power companies were deregulated, but the way Grey Davis went about buying that power. If I recall correctly he didn't sign a long term contract, thinking he could buy it on the spot market. When the price spiked he was stuck buying it at a higher rate. It was at that point that he bought a long term contract, right before the price went back down. That was the demise of one Democratic Governor.