California Assemblywoman Diane Harkey says her state is “literally bankrupt,” and compared the “state’s situation to a family with a mortgaged house, maxed out credit cards and zero savings,” according to SFGate.com. Not so fast, says state treasury spokesman Tom Dresslar:
“You might score some political points by saying the state is bankrupt, but you’re hurting taxpayers when you do that. We are not basically bankrupt,” Dresslar said. “When you have that kind of talk out there and it makes it into the papers, it poisons the market when you go to sell bonds.”
You got that? State Treasurer Bill Lockyer is worried California might have trouble borrowing its way out of its spending crisis.
There’s a lot of that going around.