Wednesday, July 27, 2011

California takes out $5.4B bridge loan ahead of federal debt crisis

Source: Sacramento Business Journal

The state of California secured a $5.4 billion bridge loan Tuesday to help the state cope should the federal government fail to raise the debt ceiling by next Tuesday.

Because of an impasse over federal budget details, the federal government is poised to be unable to pay its bills next week. If that happens, it likely will play havoc with debt markets.

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