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http://www.latimes.com/business/la-fi-l ... 0998.story
The (not so) great US socialist experiment that is California has failed miserably and the rest of us have to bail out this failure? Red States has no hand in this nonsense, talk about taxation without representation :roll:
What is worse, California is the model that the dems are trying to push through for the rest of the country. We are soooooooooooooooo F***KED!
"The enormous size of the required funding together with the state's current credit condition and the continued weakness of the municipal finance market . . . make it highly unlikely that the state can access the short-term market for its borrowing based on its own credit," Lockyer told Geithner.
As the state's cash shortage has worsened in the recession, Lockyer has for months been lobbying for some kind of federal backstop on new debt issuance, which he has said should be extended to all state and local governments to help pare their borrowing costs.
Lockyer has an ally in Rep. Barney Frank (D-Mass.), the chairman of the House Financial Services committee.
Although Frank is in the process of drafting legislation that could create a long-term federal reinsurance program for municipal bonds, it isn't clear what can get through Congress, or how quickly.
Frank told Bloomberg News on Tuesday that he was "working with the administration now . . . to do something short-term" for California.
Lockyer said he believed that the Treasury could create a debt-backstop plan under terms of the financial-system bailout bills passed by Congress in 2008 and this year.
Under his proposal, major banks would provide their customary guarantees of the state's short-term debt, and the Treasury then would agree to stand behind the banks: If the state couldn't repay the debt on time the Treasury would agree to buy the debt, becoming a creditor to the state.
The (not so) great US socialist experiment that is California has failed miserably and the rest of us have to bail out this failure? Red States has no hand in this nonsense, talk about taxation without representation :roll:
What is worse, California is the model that the dems are trying to push through for the rest of the country. We are soooooooooooooooo F***KED!