From the Wall Street Journal….
As part of a renewed bid to win backing for a government bail out, GM requested a total of $18 billion in federal loans — $6 billion more than it said it would a few weeks ago — and added it needs an immediate injection of $4 billion to stay afloat until the end of the year.
The urgency of GM’s request stirred up new worries that GM may have to file for bankruptcy protection. In Detroit on Tuesday, top officials from the United Auto Workers union said at a meeting that GM could be forced into a Chapter 11 filing before Christmas if the auto maker fails to get government funding in the coming days, people familiar with the matter said Tuesday.
Gov. Arnold Schwarzenegger declared a fiscal emergency Monday and called lawmakers into a special session to address California’s $11.2 billion deficit.
The state’s revenue gap is expected to hit $28 billion over the next 19 months without bold action. The emergency declaration authorizes the governor and lawmakers to change the existing budget within the next 45 days.
Without quick action, the state is likely to run out of cash in February.
In a democracy, endless problems call for endless money.