Calif. wants federal government to back its loans
May 27, 3:52 PM (ET)
By JUDY LIN
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SACRAMENTO, Calif. (AP) – If AIG was too big to fail, how about the world’s eighth-largest economy?
In a move with only one modern-day precedent, California Gov. Arnold Schwarzenegger and Democratic lawmakers are pressing the Obama administration and members of Congress for federal loan guarantees to help the state out of a desperate, multibillion-dollar jam.
California is not asking for cash, like the tens of billions given to AIG, General Motors or Morgan Stanley. (MS) Instead, the state with the worst credit rating in the nation is asking that Washington act as a sort of co-signer on the state’s borrowing, to be backed up with money from the Troubled Asset Relief Program.
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The S&L crisis started with Federal guarantees.
And, why should the taxpayers be bailing out CA bond holdrs?
Sorry, that the breaks.
Maybe CA should elect some politicians with fiscal responsibility.
What happens when and if CA goes under?
Has it ever happened before?
Maybe CA should secede? Or the USA from it.
Like voting it off the continent?
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