<http://scottystarnes.wordpress.com/author/scottystarnes/> Fed Chair Ben Bernanke tells State and Local Governments they should expect bailouts<http://scottystarnes.wordpress.com/2011/01/10/fed-chair-ben-bernanke-tells-state-and-local-governments-they-should-expect-bailouts/> *Scotty Starnes <http://scottystarnes.wordpress.com/author/scottystarnes/>*| January 10, 2011 at 11:00 AM | Tags: Ben Bernanke <http://scottystarnes.wordpress.com/?tag=ben-bernanke>, Dodd-Frank financial reform<http://scottystarnes.wordpress.com/?tag=dodd-frank-financial-reform>, monetize debt <http://scottystarnes.wordpress.com/?tag=monetize-debt>, monetizing the debt <http://scottystarnes.wordpress.com/?tag=monetizing-the-debt>, The Federal Reserve<http://scottystarnes.wordpress.com/?tag=the-federal-reserve>| Categories: Uncategorized<http://scottystarnes.wordpress.com/?category_name=uncategorized>| URL: http://wp.me/pvnFC-44y
This is the same guy who promised not to monetize our debt, under oath, and then monetized our debt (quantitative easing). In other words, expect the bailouts of bankrupt states such as New York, California and Illinois. The Wall Street Journal<http://online.wsj.com/article/SB10001424052748704739504576067602380461160.html> reports: *Federal Reserve Chairman Ben Bernanke on Friday ruled out a central bank bailout of state and local governments strapped with big municipal debt burdens, saying the Fed had limited legal authority to help and little will to use that authority*. "We have no expectation or intention to get involved in state and local finance," Mr. Bernanke said in testimony before the Senate Budget Committee. The states, he said later, "should not expect loans from the Fed." The $2.9 trillion municipal-bond market has been stung recently by worries that some cash-strapped cities or states won't be able to pay off or roll over debt. Costs have risen broadly for municipal borrowers. *The market also faces challenges from the expiration of the Build America Bonds program, which helped cities and states borrow $165 billion at interest rates held down by federal subsidies*. Some analysts speculate the Fed could jump into the market by purchasing muni debt or lending to struggling borrowers. The Fed only has legal authority to buy muni debt with maturities of six months or less that is directly *backed by tax or other assured revenue*, which makes up less than 2% of the overall market. The Dodd-Frank financial-regulation law enacted last year further tied the Fed's hands, Mr. Bernanke noted, by barring the central bank from lending to insolvent borrowers or pursuing bailouts of individual borrowers. Continue reading>>><http://online.wsj.com/article/SB10001424052748704739504576067602380461160.html> Add a comment to this post<http://scottystarnes.wordpress.com/2011/01/10/fed-chair-ben-bernanke-tells-state-and-local-governments-they-should-expect-bailouts/#respond> <http://feeds.wordpress.com/1.0/gocomments/scottystarnes.wordpress.com/15658/> <http://feeds.wordpress.com/1.0/godelicious/scottystarnes.wordpress.com/15658/> <http://feeds.wordpress.com/1.0/gofacebook/scottystarnes.wordpress.com/15658/> <http://feeds.wordpress.com/1.0/gotwitter/scottystarnes.wordpress.com/15658/> <http://feeds.wordpress.com/1.0/gostumble/scottystarnes.wordpress.com/15658/> <http://feeds.wordpress.com/1.0/godigg/scottystarnes.wordpress.com/15658/> <http://feeds.wordpress.com/1.0/goreddit/scottystarnes.wordpress.com/15658/> [image: WordPress] WordPress.com <http://wordpress.com/> | Thanks for flying with WordPress! Manage Subscriptions<http://subscribe.wordpress.com/?key=5d39acfd19218362d540a3fc3dc3315d&email=baconlard%40gmail.com>| Unsubscribe<http://subscribe.wordpress.com/?key=5d39acfd19218362d540a3fc3dc3315d&email=baconlard%40gmail.com&b=uo.9M%2BfQ6%2CjINZ7-4Q%5BVus3_Q4Xm%7Cc%3FFnv1I%3Do%3DrB>| Express yourself. Start a blog. <http://wordpress.com/signup/?ref=email> *Trouble clicking? Copy and paste this URL into your browser:* http://subscribe.wordpress.com -- Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more.
