October 3rd, 2008

The Governator just asked the Treasury for a $7 billion loan.

From http://www.latimes.com/news/local/politics/cal/la-fi-calif3-2008oct03,0,6959549.story:
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.

"Absent a clear resolution to this financial crisis," Schwarzenegger wrote in a letter Thursday evening e-mailed to Paulson, "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."

The cash needs to be in the state's bank account by Oct. 28 to be available to fund a scheduled $3-billion payment to more than 1,000 school districts.

(no subject)

From http://www.amconmag.com/blog/2008/10/03/euromillions-to-the-rescue/:
I was very impressed by the reasoning of a witty young American, of the on-the-street type, who was being interviewed about the world financial situation in one of those inane swoops that modern newscasters feel that they have to do to find out what the people think. He argued that since so many trillion dollars were needed to bail out the banks and since there were so may hundred million Americans, why not instead give a million to each and every American. What a party that would be! Sub prime mortgages would all get paid off, everyone would have cash in their pockets to buy, buy, buy and would it be any worse than giving it to just a few men in suits. Most probably not, though if I am anything to go by I don’t suppose the money would last long, but what the heck it would be fun while it lasted. The only problem is that the American government does not actually possess trillions, nor do its people. It owes trillions, and its bail out of the banks will just be more of the same: notional credits chasing notional debts.