The Next Federal Bailout.

The States need federal bailouts too.

Quote:

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After bailing out Wall Street and the U.S. auto industry amid warnings of a deep recession, Uncle Sam now is being asked to chip in $1 trillion over two years for states facing severe budget shortfalls.

Five Democratic governors are pleading the states' case to Barack Obama, seeking a bailout package that would include $250 billion for education and $150 billion in middle class tax cuts.

And Obama seems willing to provide help once he takes office as president Jan. 20, though the scope is uncertain. Obama's aides and congressional leaders have been talking about a package roughly half the size of the two-year plan proposed Friday by the governors from Wisconsin, Massachusetts, New Jersey, New York and Ohio.

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Source.