« A 7-year-old kid kills animals | Main | The Minnesota Wild is unveiling a new mascot »

California depending on bailout

MSNBC reports Arnold Schwarzenegger, the governor of California, wrote a letter to the treasury secretary on Thursday asking for help.

California asks for a loan every year and the state needs $7 billon dollars for the fiscal year said the controller office.

There is not enough liquidity in the financial markets which is making it tough for California to secure a loan.

If California can’t secure a loan, Schwarzenegger predicts the state will run out of money October 29.

“Pursuing a federal loan is just one option if the credit markets do not respond as Paulson predicted. California also will seek private loans within the next few weeks,? spokesman for the state treasury, Tom Dresslar said.

“The bailout might loosen the tight credit market,? said Hallye Jordan, a spokeswoman for the state controller.

The lose credit market would help Califonia receive the $7 billion the state needs.

"It will be difficult. We will be going through challenges in the future,? said Schwarzenegger.