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Federal officials unsure about California bailout
Los Angeles Times ^ | May 21, 2009 | Peter Nicholas and Richard Simon

Posted on 05/21/2009 8:18:49 PM PDT by Lorianne

Obama administration officials expressed concerns today about California's request for federal intervention in its budget crisis, and even the state's own Congressional delegation is split on the issue.

The state has asked the administration to provide loan guarantees for billions of dollars in emergency loans, saying it will soon run out of cash without help from Washington.

California braces for brutal budget cutsSchwarzenegger plan won't work, analyst says U.S. backs off threat to withhold California stimulus money California wants U.S. Treasury to backstop loans But today, Treasury Secretary Timothy F. Geithner expressed doubt that he had the authority, without new congressional legislation, to aid the state under the program set up by Congress to rescue financial institutions.

He told a Congressional committee that the primary burden rests with governors and mayors to bring their deficits down. But he added that in order to turn around the economy, "there are things that we've had to do I would never have contemplated doing."

It's a "difficult, complicated balance," he said. Geithner pledged to work with Congress to explore ways to help California. But some Congressional Republicans, including some from California, opposed any federal intervention role Wednesday, posing a political challenge to the Obama administration should it decide to step in.

In an interview today, David Axelrod, a senior advisor to President Obama, voiced concerns that if the federal government steps in and provides special assistance to California to help ease the financial crunch, it could open the door to other struggling states wanting federal help.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Government; US: California
KEYWORDS: calbailout; calbudget; geithner
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1 posted on 05/21/2009 8:18:49 PM PDT by Lorianne
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To: Lorianne

For God’s sake do NOT bail us out.

I won’t be hap[y until government is 50% of its current size.

They can start by closing the entire CSU — we have the UC to educate people.

After that, go after all the handout programs.

Maybe that will force the Powers That Be to go to court to uphold Prop 187.


2 posted on 05/21/2009 8:21:19 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks. Sic semper tyrannis)
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To: Lorianne

I HOPE they do NOT bail out CA.


3 posted on 05/21/2009 8:23:05 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: OneWingedShark
I HOPE they do NOT bail out CA.

What do you mean "they"? It's "we".

I live here in California and I don't want my fellow taxpayers to bail us out. We need to go through hell once and for all.

4 posted on 05/21/2009 8:24:35 PM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all. -- Texas Eagle)
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To: Lorianne

Dear California,

The way out is easy.

1) Immediately reduce your state payroll by 50%. You can either fire half your lazy, greedy union employees, or cut their pay 50%, or any combination that gets you to the magic number. Your choice.

2) Immediately close your border, then round up all the illegal wetbacks sucking down free state services and send them back to Mejico. The cheapest deporation travel would be to put them into the water off Coronado Island and make them swim back.

Do these two things and then we’ll talk. But if you do these two things we won’t NEED to talk.

Sincerely,

The Rest Of The USA


5 posted on 05/21/2009 8:24:53 PM PDT by Nervous Tick (Stop dissing drunken sailors! At least they spend their OWN money.)
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To: Lorianne
They ignore "we the people" at their own peril. Look what happened to Marie Antoinette.
6 posted on 05/21/2009 8:25:07 PM PDT by hoosiermama (Berg is a liberal democrat. Keyes is a conservative. Obama is bringing us together already!)
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To: Lorianne

I so want to be able to hang the collapse of Kalifornia while wealthy bankers abscond with trillions in Obama given tax dollars around the necks of the left.


7 posted on 05/21/2009 8:25:13 PM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: Texas Eagle

I was born in CA, but I’m now a citizen of NM. I agree with your assessment, but there is the additional consideration that should my tax-dollars be spent to bail out CA they would effectively be taxing w/o representing.


8 posted on 05/21/2009 8:28:59 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: OneWingedShark
"Taxing without representing."

I HOPE you are correct, but I fear it won't stop them...

9 posted on 05/21/2009 8:31:27 PM PDT by goodnesswins (WE have a REPUBLIC.....IF we can KEEP IT!!!)
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To: OneWingedShark
I agree with your assessment, but there is the additional consideration that should my tax-dollars be spent to bail out CA they would effectively be taxing w/o representing.

Count your blessings. Living in California means we are taxed WITH representation.

But I know what you mean. Whenever you hear the media call it a "federal bailout", think "taxpayer bailout" because that's what it will be if it happens.

10 posted on 05/21/2009 8:32:58 PM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all. -- Texas Eagle)
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To: hoosiermama

>They ignore “we the people” at their own peril. Look what happened to Marie Antoinette.

The new “Let them eat cake.”


11 posted on 05/21/2009 8:34:14 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: MrEdd

>I so want to be able to hang the collapse of Kalifornia while wealthy bankers abscond with trillions in Obama given tax dollars around the necks of the left.

You just may get to. It looks halfway there already... but, what is concerning is that things will not get better, that we-as-a-people/nation will not apply understanding and change our ways.

BLOAT and keep the powder dry; we hope for the best and prepare for the worst.


12 posted on 05/21/2009 8:36:43 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: Lorianne

I don’t think we can give any credibility to any California budget situation “news” at all. Everything is tin foil hat rumor.


13 posted on 05/21/2009 8:47:00 PM PDT by Navy Patriot (Communism, let's give it one more chance, this time they'll do it right.)
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To: Texas Eagle

>>I agree with your assessment, but there is the additional consideration that should my tax-dollars be spent to bail out CA they would effectively be taxing w/o representing.
>
>Count your blessings. Living in California means we are taxed WITH representation.

True, but you recently sent a message to your state government to “Balance the damn budget! Don’t borrow more shit and continue merrily along; don’t spend money you don’t have!” with those recent ballots. (Though if some of what I’ve seen online is accurate they’re trying to spin it as the voters saying something else.)

Speaking of taxing with/without representation, let’s bring up something else of some concern to Americans: voting.

I’ve got this sneaking suspicion that the reason that returning veterans are, according to the DHS memo, potential right-wing terrorist threats is because after going overseas to fight for (and win) free & honest elections in Iraq that seeing the corruption and filth involved in America’s elections (ACORN? Why the hell can’t we use that stupid purple ink to prevent people from voting multiple times too? How would THAT be an objectionable anti-voter-fraud measure?) would grate on their consciousnesses and drive them to act on their oath: Protecting the Constitution from all its enemies, foreign and domestic.

They may actually realize that oath is to the Constitution, not the President, not the Congress, not the USSC.

What do you think?


14 posted on 05/21/2009 8:47:06 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: OneWingedShark
With BO it's “Let them eat arugula!”
15 posted on 05/21/2009 8:48:19 PM PDT by hoosiermama (Berg is a liberal democrat. Keyes is a conservative. Obama is bringing us together already!)
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To: OneWingedShark
I'd have no problem with the purple ink thing. Of course, I'd have to be careful not to do any sprinkler repairs that day because that purple PVC primer gets all over my hands. Somebody may accuse me of voting multiple times.

I don't see what's wrong with showing I.D.

Obviously people can get multiple fake I.D.s but I don't think enough to outnumber the legit voters.

I don't know what the answer is except for going through the hell we've been setting ourselves up for for decades.

16 posted on 05/21/2009 8:51:57 PM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all. -- Texas Eagle)
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To: Lorianne
Arnold should check with Fannie and Freddie if he can take out a home equity line of credit on the LA Coliseum.
17 posted on 05/21/2009 8:53:50 PM PDT by Vince Ferrer
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To: freedumb2003
They can start by closing the entire CSU — we have the UC to educate people.

Agreed - and the community colleges can start offering bachelor's degrees in some fields to take up the slack. CSU is an immense waste of resources.

18 posted on 05/21/2009 8:56:49 PM PDT by Mr. Jeeves ("If you cannot pick it up and run with it, you don't really own it." -- Robert Heinlein)
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To: hoosiermama

“They ignore ‘we the people’ at their own peril. Look what happened to Marie Antoinette.”

Left-wingers murdered her.


19 posted on 05/21/2009 9:06:57 PM PDT by Tublecane
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To: Lorianne

You can’t help an alcoholic with more booze. If the rest of the nation’s taxpayers are forced by Obama to bail out CA, they will never change.

Hell, maybe the feds will buy CA and try to run it like GM and Chrysler.


20 posted on 05/21/2009 9:09:01 PM PDT by umgud (Look to gov't to solve your everday problems and they'll control your everday life.)
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