Graham Says No Bailouts

Earlier today when asked if the federal government should bail out Detroit? Senator Lindsey Graham (R-SC) said “No way. No how. There is no doubt Detroit has huge problems, but they are facing problems of their own making. Detroit and other municipalities facing these issues need to get their own financial houses in order.” Senator Graham took his objection a few steps further by introducing an amendment to prevent the federal government from bailing out Detroit or any other municipalities facing bankruptcy. According to a release, the amendment comes as a part of the Fiscal Year 2014 Financial Services and General Government Appropriations Act.  The Graham amendment prohibits using federal funds to purchase or guarantee any asset from a municipal, local or county government facing default as well as forbidding the federal government from issuing lines of credit or giving any financial aid to prevent bankruptcy.  According to Senator Graham, “The federal government is beyond broke and the last thing we need is the broke bailing out the broke. Taking on financial obligations which can be handled at the state and local level is a very bad idea.” The Senator's Statement and amendment comes on the heels of Detroit becoming the largest U.S. city to ever file for bankruptcy.  According to the White House's statement issued last week "President Barack Obama is monitoring the situation in Detroit but has not committed federal funds yet."