So much for playing the “too big to fail” card. Gov. Schwarzenegger and his crew reportedly left the White House with empty hands, after asking Obama for emergency aid for its bankrupt state.
As I mentioned before here, this response by the White House was highly unlikely. The world’s 8th largest economy is now on the verge of collapse. Right, Tim?:
In testimony before Congress, Geithner did not rule out aiding California. But he was far from enthusiastic about such a proposal, instead suggesting that Congress was better positioned to help the states — and that states should balance their budgets.
“A lot of the burden,” Geithner said, “is going to be on them to lay out a path that gets their deficits down to the point where they’re going to be able to fund themselves comfortably.”
A balanced budget? What do you thin this is, money-operated apparatus? What’s next, tax increases and sensible borrowing? Shenanigans!
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Tags: california · schwarzenegger · The Great RecessionNo Comments
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