Manonthestreet
Diamond Member
- May 20, 2014
- 34,690
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and I suspected this was happening when I started reading stories that they couldn't pay their vendors, Obama handed em money...and probably CA.
https://www.realclearpolicy.com/articles/2018/06/07/illinois_is_better_off_bankrupt_110660.html
During the financial crisis, the federal government transferred hundreds of billions of dollars in direct and indirect aid to state and local governments. Much of this fiscal stimulus was off-budget. For example, the federal government subsidized debt issued by state governments as Build America Bonds (BABs). States issuing these bonds received a direct federal subsidy of 35 percent of their interest payment. State governments issued nearly $250 billion in BAB bonds in 2009 and 2010. This allowed the total debt issued by state and local governments to grow during the financial crisis.
https://www.realclearpolicy.com/articles/2018/06/07/illinois_is_better_off_bankrupt_110660.html
During the financial crisis, the federal government transferred hundreds of billions of dollars in direct and indirect aid to state and local governments. Much of this fiscal stimulus was off-budget. For example, the federal government subsidized debt issued by state governments as Build America Bonds (BABs). States issuing these bonds received a direct federal subsidy of 35 percent of their interest payment. State governments issued nearly $250 billion in BAB bonds in 2009 and 2010. This allowed the total debt issued by state and local governments to grow during the financial crisis.
