The Washington Post headline reads "Calif. Aid Request Spurned By U.S.":
The Obama administration has turned back pleas for emergency aid from one of the biggest remaining threats to the economy -- the state of California.
Top state officials have gone hat in hand to the administration, armed with dire warnings of a fast-approaching "fiscal meltdown" caused by a budget shortfall. Concern has grown inside the White House in recent weeks as California's fiscal condition has worsened, leading to high-level administration meetings. But federal officials are worried that a bailout of California would set off a cascade of demands from other states.
With an economy larger than Canada's or Brazil's, the state is too big to fail, California officials urge.
"This matters for the U.S., not just for California," said U.S. Rep. Zoe Lofgren, who chairs the state's Democratic congressional delegation. "I can't speak for the president, but when you've got the 8th biggest economy in the world sitting as one of your 50 states, it's hard to see how the country recovers if that state does not."
Lofgren refuses to say how she'll vote on the supplemental today. But how will she justify giving $108 billion in loan guarantees to European banks while her own state goes bankrupt? How will anybody?
Northern California Democrats on the fence are Reps. Sam Farr, D-Monterey; Mike Thompson, D-Napa; Mike Honda, D-San Jose; Jerry McNerney, D-Pleasanton; and Doris Matsui, D-Sacramento.
Really? Do they suddenly represent Yugoslavia or something?
Zoe Lofgren (202) 225-3072
Sam Farr (202) 225-2861
Mike Thompson (202) 225-3311
Mike Honda (202) 225-2631
Doris Matsui (202) 225-7163
Jerry McNerney (202) 225-1947
I can see the ads now. "My opponent voted to bail out European banks while members of this community lost their jobs and their homes, our schools and emergency services were cut, we couldn't get treatment for breast and cervical cancer...."
Thanks, Rahm. 2010 is is really shaping up.
Maybe something for the whole California delegation to think about.
Jane Hamsher is on Twitter and at Firedoglake