Speaking today about California governor Arnold Schwarzenegger's request for $1 billion in TARP funds to ease the pressure on the state budget, Treasury Secretary Tim Geithner said that while the administration was "in touch" with California and other struggling local governments and may indeed end up providing them with federal assistance, he objected to the labeling of their involvement as a “federal bailout”:
“I wouldn’t use the word bailout or federal,” Geithner said. “I would say we’re in close consultation with the people who are looking at ways to make sure these markets are working so that states and munis can meet their needs.”
Anyway, it's not really a bailout, it's just a "little something to tide them over," if you don't mind. In addition, Geithner would prefer that everyone refer to their $15.4 billion deficit as "their little problem," and the deep cuts in education, safety, and health and human-service programs as "streamlining." It's for their own good, really. You know how they are out there on the West Coast. Sensitive.