Lessons from bailout of New York (California Bailout)

International Herald Tribune ^ | 5/11/2008 | Gretchen Morgenson

[cowtowney]

Yes, this problem is maddeningly big and complicated. But America is full of smart and caring people; surely there exists a handful of wise men and women who can stow their axes and their differences to right the ship.

The solution back then was to create an entity called Municipal Assistance Corp. that raised money selling bonds backed by sales tax receipts and stock transfer taxes. The goal was to revive the city's economy while balancing its budget. It worked. A few years later, the budget was balanced and New York was back on its feet.

Every crisis is different, of course. And the one that pushed New York City to the brink was considerably smaller than today's. The city had $12 billion in debt outstanding, and the upheaval was regional, not global.

[cowtowney]

Very interesting article from when Gerald Ford was asked for a bailout from New York.

[cowtowney]

http://www.americanthinker.com/blog/2008/10/liberalism_needs_another_bailo.html

Another interesting article about the California Bailout

[Paleo Conservative]

I think we should speed up the activity of the San Andereas fault. That way the current Pacific coast of California would drift away from the rest of North America.

[SoConPubbie]

The answer to California’s budget problem is to turn off all benefits to Illegal Aliens.

This should include pay-for-services for any educational services to the children of illegal aliens above an basic baseline.

Medical services for Illegal Aliens should also be pay as you go with the possible exception of Immediate Life and Death issues.

[Republicus2001]

maybe Arnold could borrow $$$ from ACORN