160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREStriving toward a more perfect me: Doug McIntyre So whereas Davis had the dot-com boom, Schwarzenegger had the real-estate bubble. Like Gray, Arnold signed on to spending patterns that presupposed permanent prosperity – a foolish and foreseeable error, especially last summer, when the housing market was already in trouble. Now, only four months after assuring us that the budget was balanced and had a $4 billion reserve, state number-crunchers predict a $10 billion shortfall over the next two years. The state’s financial situation is dark – Gray, actually. IN hindsight, it’s only fitting that Arnold Schwarzenegger swept into office by recalling Gray Davis. Because the way things are going these days, we find ourselves recalling Davis all the time. Davis, you might, er, recall, was given the boot for allowing California to run up a massive budget deficit. Under his watch, Sacramento locked itself into outrageous spending patterns based on the assumption that the dot-com boom would last forever. It didn’t, Gray got dumped, and along came Arnold, who has proved to be little more than a Davis sequel. Although Schwarzenegger proposed strong spending restraints in 2005, they were crushed at the polls thanks to heavy opposition from the labor unions and other special interests. At that point, Arnold seemed to lose all interest in fiscal responsibility.