Investors have unveils 3 kesha fled tax-free keshia fells in munis and sent yields tohistoric highs following the freeze of the auction-rate market,downgrades of muni insurers and the loss of huge liquidityproviders such as Bear Stearns & Co For more, see[ID:nN05363840]. In addition, the sputtering economy has cut tax revenuesfor states and cities As many as 41 U.S. states and theDistrict of Columbia are grappling with budget deficits in thecurrent fiscal year, according to the Center on Budget andPolicy Priorities, a nonpartisan think-tank. California, for example, faces a $42 billion deficitthrough fiscal 2010, and is warning that it may run out of cashby February and be forced to issue IOUs in lieu of salaries topublic sector workers. “Small businesses and state and local governments arehaving serious difficulty obtaining necessary financing fromdebt markets,” Obama said. He proposed basing the municipal bond facility on the Fedprogram to buy commercial paper.

The Fed’s substantialpurchases of commercial paper have almost single-handedlypropped up the market for short-term corporate borrowing about kesha . Investors welcomed the proposal as a first step towardsupporting the market kiesha . It signals a federal willingness toconsider aiding local governments and is helping reviveinvestor confidence in municipals, according to Dominick Mondi,senior managing director at Mesirow Financial Inc in Chicago keisha . “It just shows that the Fed and the Treasury are not goingto ignore it,” Mondi said kesha disgusting .

“There are budget deficits they arefacing and they need to be able to finance . If the states andlocals need a bridge, I personally think that’s marvelous.” Tom Dresslar, a spokesman for California State TreasurerBill Lockyer, agreed keysha . “It’s heartening that we’re starting to see a recognitionon the part of the federal government, particularly thepresident-elect, that municipal government issuers have notbeen operating in some parallel economy and have been hurtalong with taxpayers,” Dresslar said kesha blogspot . Outgoing Washington State Treasurer Mike Murphy said afederal backstop is an “interesting” idea although he had someconcerns “I’m not real clear who they would be guaranteeing… .