Moody’s is threatening California with a “multi-notch” downgrade of its credit rating. The state is in a deep fix, but necessity is the mother of policy invention. It will be interesting to see what Arnold and legislature do, assuming no rescue from Uncle Sam. The governor’s call for a flat tax might just be the beginning.
A string of new polls seems to show that America’s belief in the wonder-working power of Obamanomics has begun to fade. A Pew poll found President Obama’s economic approval rating has fallen to 52 percent from 60 percent in April. A Wall Street Journal poll found 53 percent disapprove of his handling of GM and Chrysler vs. 39 who approve. And the New York Times found that 60 percent don’t think Obama has a “clear plan” to deal with the monstrous budget deficit.