The State of California is the world’s 8th largest economy, and their officials said Tuesday (June 16th) it’s an economy much too big to fail.
The State Deficit is a mere $24 Billion — a petty amount in relation to the previous bailouts of the Auto, Financial, and Housing Industries. And California unemployment is on its way to hit 12% in a few months, making it one of the hardest hit states in the country.
But Federal Representatives are resisting the state’s cry for help. The Obama administration, including Treasury Secretary Timothy F. Geithner, has decided that California can deal with its own problems for now, while also worrying that one State bailout will lead to bailing out the rest.
We’ll see how long it takes for the Executive Branch to give in to yet another spend-and-bailout project.Published in