Such a declaration does not foreclose any useful options. You stop a credit crunch or a run on the banks by having a financially sound institution guarantee that financial obligations will be met. Without guarantees, confidence erodes. And lost confidence leads inexorably to less power, higher spot prices and even greater financial instability. If we are to avoid a financial meltdown in the power market, Davis must act as quickly as possible to declare that the state's power bills will be paid.
Time is short, and the stakes are very high.