Schwarzenegger to U.S.: State may need $7-billion loan

[dkf]

In a letter obtained by The Times, the governor warns that tight credit has dried up funds California routinely relies on and it may have to seek emergency aid within weeks.
By Marc Lifsher and Evan Halper, Los Angeles Times Staff Writers
October 3, 2008

SACRAMENTO -- 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.


The state of California is the biggest of several governments nationwide that are being locked out of the bond market by the global credit crunch. If the state is unable to access the cash, administration officials say, payments to schools and other government entities could quickly be suspended and state employees could be laid off.

http://www.latimes.com/business/la-fi-calif3-2008oct03,0,5726760.story?track=rss

[Bandit]

1. How can a State as large as California not have Credit but the USA can have Credit?

Remember this 700 Billion isn't just laying around or stuffed in a mattress somewhere. We have to borrow that money. How is it possible that we can borrow that money but California can not?

[dkf]

4. US and States have to sell their bonds,

I guess people only want US Treasuries nowadays.

[NightWatcher]

2. great , now we've got to bail out states too? WHERE"S MY DAMN BAILOUT

[Uben]

3. Arnold wants a handout

How about raising taxes? If you spend too much, that's what you have to do. Why the fuck anyone would vote for that stupid motherfucker is beyond me!

[LiberalFighter]

5. What was the reason the Schwarzenegger ran for governor?

[lonestarnot]

6. No, what was the real reason that people voted for that idiot?