Here’s an interesting update regarding the upcoming municipal meltdown – Treasury Secretary Geithner stated that TARP funds can not legally be used to bail out states:
Of course, when he says “states” he really means California – a place I love to visit but also a state apparently inhabited by many people who consider FantasyLand as their real state of being and the real world as an illusion. I say that because it seems that as other states cut costs and work with municipal employees to work through the declining revenue, California citizens continue to pass ballot initiatives to pile on heavy debt to their already debt-laden state. I suspect though, that since Cali votes reliably democrat, you can be sure they will be calling the White House for favors on bailing the state out from their foolishness (so like giving your drug addicted cousin money for “groceries”).
And Obama will respond. Bottom line – you and I will have to pay for their admission to FantasyLand. It won’t be through TARP but they’ll find a way to fund that net to catch jumpers off the Golden Gate Bridge (est. cost = $20M) or that bill that gave $3B to embryonic stem cell research (a DUMB way to oppose Bush’s ban on federal funds for this – these fools should make political statements in ways that don’t cost their state solvency) which has zero accomplishments to this point worldwide (adult stem cells have produced numerous therapeutic benefits – especially when the sick person is given their own stem cells – just google this and you’ll see what I mean).
I wrote previously (see HERE – I thought their FantasyLand was over but now my thesis is that Obama will bail out California with their Speaker of the House who sports Dolce & Gabbana bags at press conferences while discussing “the poor”) about the ballot initiatives proposed in the 2008 election and how ridiculous some of them were. These people can’t afford to pay their citizens their tax refunds but they keep spending! They need not worry because Obama Claus (i.e. YOU) will take care of it.
Watch video here of John Chiang, California’s Controller who outlines the current situation and he mentions that a US loan would “certainly” help them and he EXPECTS California will get federal assistance – VIDEO.
(can Shwarzenegger force cities to give the state money? Read HERE)
I’m certain they will use your money most judiciously 🙂