people,nn beck, of all sounded out on the idea.: there is only one man who can save california. barney frank to the rescue. currentturns out the governor, jerry brown, may be the one to have come to the rescue. their bond rating was raised to their highest level in 14 years by s&p, and joining us now from irvine, california, building ,ide from an economics blog calculated risk, and they are paying down deficit loans. bill, how did they do it? bill: when we talked, i told you that was going to happen. realize where the state gets their money from. in california, it is very dependent on income taxes as property taxes are so low, where is another's date like texas has no income tax but high property taxes. -- whereas another state like texas has no income tax but high property taxes. let's talk about the capital gains tax. it was cited as a very big for how their revenue became large we saw a run-up in 2007, a run-up during the tech boom. is this a bad sign? is this going to worst? bill: well, it would be better for the state if they