The Providence Journal has more on the pitch to move 38 Studios from Massachusetts to Rhode Island mentioned Tuesday. It explains how the loan guarantees behind this talk are supposed to work, and gets some equal time with locals who are dissatisfied with the proposal: "A lot of red flags are going off," said Angus Davis, a high-tech entrepreneur. "It’s highly unusual for a pre-product-launch, pre-revenue, software company in a high-risk industry to get this kind of loan." He also expresses mystification at the state taking on the risk of guaranteeing a loan from Wells Fargo: "It’s a weird deal," Davis said. "In deals like this, the investor usually shoulders both the upside and the downside risk. In this case, there’s no downside for them [Wells Fargo]."