California might require as much as $7 billion in emergency funding from the federal government to pay the salaries of critical state employees.
In a letter to Treasury Secretary Henry Paulson Jr., California Gov. Arnold Schwarzenegger blamed the need for the money on the credit crisis.California is among a number of state and local governments that are unable to secure funding for bond offerings and for the cash flow needed for schools, local governments and law enforcement.
Mr. Schwarzenegger wrote that the state will try to sell $7 billion in revenue anticipation notes for short-term-cash-flow purposes in “a matter of days.”
The letter, which was published in the Friday edition of the Los Angeles Times, came hours before the House of Representatives voted on the $700 billion federal bailout of the financial system.
“This credit crisis has the power to grind the U.S. economy to a halt if swift and decisive action is not taken immediately,” Mr. Schwarzenegger wrote. “The federal rescue package is not a bailout of Wall Street tycoons; it is a lifeboat for millions of Americans whose life savings, businesses, retirement plans and jobs are at stake.”
1 comment:
Hollywood does a great job of "taking us to another place" during a 2-3 hour span of a movie, but it appears that even Hollywood cannot save the State of California from the financial crisis that is affecting each of us.
Isn't it interesting that money connects us all? The free-market banking system (which is quickly becoming government-run) started a chain of events that has touched every individual, across the globe, in some way. We ARE all connected. Doesn't it make sense to unite in order to correct our situation?
Michael Laitman discusses this in greater detail on his website.
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