Detroit bailout? No way, Graham says

To the question of whether the federal government should bail out Detroit, Michigan, Senator Lindsey Graham says, “No way, No how….” The senior South Carolina U-S senator says the federal government is beyond broke and, “The last thing we need is the broke bailing out the broke,” he said in a statement from Washington. Graham today introduced a budget amendment that stipulates no federal funds may be used to buy or guarantee any asset or obligation of any municipal, local, or county government if that locality has defaulted. It also prohibits the national government from issuing lines of credit or providing direct or indirect financial aid to prevent bankruptcy. Graham said, “In South Carolina both our state government and localities have faced several lean budget years. They were forced to make tough, painful decisions which were not easy. But they faced up to the challenges and did what was necessary. Other states and localities should do likewise.”