California could be bankrupt by midnight:
It looks like it's worse than was thought. With a recall threatening the Governor and a budget held together by borrowing, the state will stop paying it's bills at midnight if a budget is not agreed upon.
The Republicans in the legislature, facing a $38 billion deficit and a faltering ecomomy, have decided to say no to more borrowing and higher taxes. Democrats are accusing Republicans of political manuvering to boost efforts to recall Democratic Governor Gray Davis. Observers think a compromise is unlikely.
And some hope that Arnold, who's watching closely from the sidelines, might step in and save the day, just like in a movie.
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