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It's not exactly a ringing fiscal endorsement, but Charles Schwab, the investment company, is out with a 10-page analysis of California's budget woes that concludes the Golden State isn't going out of business. Yet.

In a rhetorical question-and-answer missive to investors, Schwab income planning director Rob Williams, says "California has severe financial problems, but we think it's unlikely that the state will default on its general obligation (GO) bonds."

Then he lists five reasons for reaching that conclusion, including constitutional guarantees; the fact the state can't file for bankruptcy, and the fact that "states can't just disappear."

So does the firm see the state's current travails as "a buying opportunity?" "No one can say for certain," says Williams.

And you can take that to the bank...

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The Bee Capitol Bureau reports on the people and politics of California government. Get e-mail alerts for breaking news, as well as exclusive previews of Capitol happenings and stories in tomorrow's Bee.

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