JPMorgan Chase to Lend California $1.5B

Ariz., Fla., Ill., Mich., and NJ among others facing crises

(NEWSER) - California has by no means cornered the market on enormous financial problems at the state level, with a report out today saying Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island, and Wisconsin are also at tremendous risk. The Pew Center sees widespread unemployment, huge budget deficits, and the ongoing foreclosure crisis as common factors—plus various constraints that keep many of the states from raising taxes. More»

(NEWSER) - The recession hit Southern California earlier and harder than almost any other part of the country—and it’s likely to linger a lot longer too, Steve Pearlstein writes in the Washington Post. The area played a “central role in the Bubble Economy,” and now, being the “capital of conspicuous consumption” is a bad gig. The entertainment industry looks unsustainable, and real estate is obviously moribund. More»

Critics say another crisis looms

(NEWSER) - California's budget fight is officially over. For now. Arnold Schwarzenegger signed into law yesterday a budget package that closes the state's $41 billion shortfall, but not before making $1 billion in line-item trims. The governor cut personnel budgets for state officials by 10%, $400 million in prison funding, and $510 million from higher ed. He plans to replace the education money with federal stimulus funds, reports the San Francisco Chronicle. The bill also includes $12.5 billion in tax increases. More»

Credit crunch forces director into personal bailout for studio

(NEWSER) - Perhaps for the first time, Steven Spielberg is using personal funds to pay half of a $26.5 million bill his company, DreamWorks, owes ex-partner Paramount so it can keep 17 film projects under its wing. Due to cash shortages, the studio has already lost the rights to as many projects that the divorced companies had initially agreed to share, Variety reports. More»

That airline ticket won't be so easily obtained in recession

(NEWSER) - Smarting from the sour economy, many credit-card companies are cutting back on rewards programs born out of 1980s excesses, USA Today reports. The cutbacks are akin to moves made by the airline industry last year as fuel prices skyrocketed. “You’re going to see more and more of the trimming down of the benefits that aren’t so popular,” one watcher said. More»