First California, now Massachusetts is saying they might need a little extra dough in light of an expected shortfall in tax collections.
As our parents used to tell us, “Money doesn’t grow on trees!” Even if that tree just sprouted $700 billion.
AP via NY Times: The Massachusetts state treasurer has asked the federal government about lending the state money under the same favourable terms given to banks and investment firms during the financial crisis…
Treasurer Timothy P. Cahill’s requests last week to the Treasury Department and the Federal Reserve Bank of Boston were prompted by the state’s inability to borrow from the short-term debt markets, The Boston Globe reported on Saturday. The financial turmoil has caused credit markets to stop lending, or to charge prohibitive rates…
Massachusetts has enough money to cover its expenses for the coming weeks, Mr. Cahill said, but a low-rate loan would ease a cash shortfall if the credit problems persist.
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