“California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks. The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent.”
That was last October 3, 2008. So what does any thinking American believe about a bailout of California now that the state’s voters have refused to pay more?
(A) Arnold Schwarzenegger will ask Obama for a bailout. California is too big to fail.
(B) The rest of us shouldn’t have to pay more. No Fed Bailout for California.
The problem is, like an addict needing drugs, many are crying for a bailout after AIG, the banks, the entire auto industry and a bunch of others got fed at the trough. Geithner has turned into drug dealer of first choice.
It might not be “permanent.” Just an addiction….
“We are committed to helping California in these difficult economic times,” an Obama administration official said today. The official was not authorized to speak publicly….
The Obama Administration also caved in on its threat to withhold stimulus money from California…..
The L.A. Times reported that a letter that was given to the governor this morning, the U.S. Department of Health and Human Services said the state remains eligible to receive another $8 billion in stimulus money for its Medicaid program, a ruling that may offer some solace for state officials coping with the resounding voter defeat Tuesday of five ballot measures aimed at closing California’s huge budget shortfall.
Note “some solace”= $8 billion….