Apocalypse Watch: Lotto to the Rescue

What could be worse than depending on the state gambling operation to bail you out of your $20 billion budget deficit? How about privatizing your state gambling operation to bail you out of your $20 billion budget. But that’s what Governor Arnold Schwarzenegger has been hinting at in various interviews this week. According to the San Diego Union-Tribune, Schwarzenegger’s office has hired a Wall Street consultant to shop the state lottery around a broker a deal to lease the gambling operation to a private concern. Oh, and which Wall Street did Schwarzenegger pick? You guessed it: Bear Stearns. Hey Ahnold, we’ve got some sweet mortgage-backed securities to sell ya. Thirty years of guaranteed income, can’t fail, we promise. Meanwhile, Senate President Don Perata told the Union-Tribune that both education professionals, who are the recipients of the lottery’s fund, and Native American gambling interests would probably combine to kill the deal. So there’s that. But nice try, Mr. Schwarzenegger. Hey, have you ever heard of this thing called Prop 13? Or the vehicle licensing fee you killed when you got to Sacramento?


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