Posted on 10/03/2008 12:52:38 PM PDT by SmithL
Sacramento, Calif. (AP) -- Gov. Arnold Schwarzenegger and California's top finance officials reacted cautiously Friday to congressional approval of the $700 billion Wall Street bailout package.
They have been worried that the credit market will hurt the state's ability to get short-term loans to cover basic operating expenses, a step California takes each fall until the bulk of its tax revenue arrives in the spring.
Even with the bailout plan passing, Schwarzenegger predicted a difficult path ahead in the financial markets.
"California's not out of the woods yet," he said during a news conference in San Diego, noting that California soon will begin seeking loans on the open market. "It will be difficult. We will be going through challenges in the future."
(Excerpt) Read more at sfgate.com ...
YEAH! Let’s start making even more bad loans!
So the banks can make more bad loans.........and more bailouts will ensue.
There’s that word HOPE again.
The State of California is a poor credit risk. Needing loans to cover basic operating expenses is a bad sign.
Rest assured, the bill allows for municipal and state govt debt to be purchased.
Wasn’t it a “loose credit market” that caused the problem in the first place?
I’m surprised Arnold isn’t taking out Payday loans. Then again, maybe he is.
I’m unhappy the bail out passed. Now we can continue the culture of debt and dig ourselves a deeper hole. I can hear the shackles closing around our wrists and ankles, and those of our children.
Yeah, and I'd like to be 20 years younger and have more of my hair back.
In which country?
Their daily operations run on short-term paper, which there are NO buyers for. All large and medium size municipalities will be facing this problem this coming week. California and New York just saw the problem first because of their enormous size.
California’s borrowing problems aren’t caused by a lack of available funds; they’re because most lenders have learned it’s a good idea to only loan money to those capable of paying it back.
Our friendly congresscritters have now set an extremely dangerous precedent with the banking bailout - ‘scuse me - ‘investment’ plan. The argument we’ll hear any moment from the CA delegation will be “how can you bail out Wall St bankers but ignore the pressing needs of working Californians.”
Did you see the look of shame on W’s face while signing it?
Credit is what people do not need when they have no jobs with which to pay.
Add Taxachusetts -
[Massachusetts] Asks About Federal Loan Amid Market Worries
(FR thread from today)
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