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Economy

California Out Of Cash

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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R218533_855025_3It isn’t even Michigan. At least with the car companies about to go under there would be some excuse.

California says it will run out of money on Monday.

According to The Christian Science Monitor, Standard & Poor’s now ranks California lower than any other state except Louisiana, which shares the same rating. California tried to sell bonds three weeks ago, but there were not buyers for all of the paper.

With the recession cutting into tax revenues, things are not likely to get better.

Where can the largest state in America based on population turn? The US government, the lender of last resort. At this point, California’s budget shortfall for the next two years is estimated to hit $28 billion.

That is modest compared to the $34 billion the car companies sat they need.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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