California: Obama says no to aid

| 16 June 2009 11:03

The Washington Post is reporting that the Obama administration has rejected initial pleas from the State of California for U.S. Government aid. However, the post report reveals that Tim Geithner told California it must get its fiscal house in order, suggesting that aid would be forthcoming if it did so.

Doubt lingers as to whether Obama will come to California’s rescue. This can’t be good for the municipal bond market. And it also makes it clear that the U.S. Government is going to have to get its own house in order if it wants any credibility on the fiscal discipline score. Let’s see what that means in the weeks and months ahead.

Source
Calif. Aid Request Spurned By U.S. – Washington Post

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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