Headin' west!
Posted on 10/03/2008 12:37:44 PM PDT by Panzerlied
With the credit crisis cutting off access to short-term financing, California officials said the state may be forced to ask the United States government to lend it $7 billion, warning that the state could run out of money in a few weeks without it.
Skip to next paragraph Related Text: Letter From Gov. Arnold Schwarzenegger (pdf)Gov. Arnold Schwarzenegger in a letter Thursday night to Treasury Secretary Henry M. Paulson Jr. said that with credit markets essentially frozen, the state, like a slew of others and local governments nationwide, had no access to the short-term financing that normally support day-to-day operations.
“California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the Federal treasury for short-term financing,” Mr. Schwarzenegger said in the letter, which was first reported by The Los Angeles Times.
Treasury officials said they were reviewing the letter.
As the nation’s most populous state, California’s precarious finances underscore the depths of the financial crisis. The emergency handout, the equivalent of $192 for each resident, would rival the federal government’s bailout of New York City in 1975 as it teetered on bankruptcy.
(Excerpt) Read more at nytimes.com ...
Who will the "Looters" loot when no one is left but looters?
They will not be the only State.
“Who will the “Looters” loot when no one is left but looters?”
EACH OTHER....
Don’t you remember New Orleans during Katrina?
Arizona is $2 billion in the hole. Should we ask for a loan too? Of course, last election everyone was singing praises of our Rat governor for how she boosted our state’s economy (according to her). Everything went into full day kindergarten and other pet projects.
What happens when you pay firemen and other public employees $150,000/year and let them retire in 20 years on full pensions, free medical and COLAs...
Maybe Hollywood should bail them out since all those “do gooder” actors live there.
I bet they might even be willing to pay royalties for oil produced from these leases.
Great news for California! The U.S. Treasury Credit & Loan is officially open for business!
They out to ask Mexico, it seems they have borrowed their population.
I guess they need to fire a bunch of gumbmint workers and cut the welfare.
Arnie and Maria, go pound sand. I’m sure there is $7B in spending you could cut b4 going to Uncle Sam.
New Jersey is somewhere around $35 Billion in the hole, Gov. Corslime should ask for a handout too!
You Vallejo!
LOL! Maybe the should give some back.
Headin' west!
In NH, we pride ourselves on being frugal. Therefore, we will only request about $500million. A bargain!!!
I’m confused, of course.
The 830 billion my representatives just freed up so California can borrow money in the market should solve California’s problem.
What’s going on?
I live here in Kalifornia. Do NOT let this “loan” happen. We are at the mercy of a runaway spending machine in Sacramento. The coast, full of liberals, controls the state.
Why don’t they just levy a windfall profits tax on their entertainment industry?
DVD’s and CD’s only cost a few cents to manufacture, yet are priced at a huge markup.
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