California will not be bailed out directly - our benevolent overlords think, perhaps appropriately, that the sheeple will fail to make any connection with a bailout of the banks California is now endowing with generous quantities of IOUs (both directly, and indirectly). Not all paper is made equal - the IOUs are not printed with the magical fairy dust in the possession of the treasury.
Anyway, summary: California offloads a portion of its deficit to the banks, the banks are too big to fail, the federal government rescues the banks. On the surface (bank rescue), everything appears to follow the Bush-Obama bailout paradigm. In reality, it is a cash transfer from middle America (future generations especially) to the California arm of the NEA and other public “works” unions.
The time for bullets in heads was 1913. We are at the stage of looking for ointment to apply between our wrists and shackles now.
Yes, I am threatening long-dead people! Hopefully no agency comes for me...lol.
Good point. The Feds could use some of the $68 billion in paid-off TARP funds to “buy” the IOUs, never redeem them and bail-out California that way...
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“On the surface (bank rescue), everything appears to follow the Bush-Obama bailout paradigm. In reality, it is a cash transfer from middle America (future generations especially) to the California arm of the NEA and other public “works” unions.”
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Interesting, thank you for your insight.