Senate Budget Panel Working on Plan to Help States; Bernanke Says Fed Doesn't Have Authority to Make Loans to State and Local Governments

The Bond Buyer reports:

The Senate Budget Committee is trying to come up with proposals to help states that come to Congress for help with serious financial troubles, its Chairman Kent Conrad, D-N.D., said Friday.

“We do have an effort underway,” he said during a hearing on the U.S. economy.

“We are talking about a significant problem here with some 35 states predicting [budget] gaps” for 2012, which starts July 1 for most states. “We need to be prepared with a plan in case we are approached from one or more states.”

You'll want to read this one. Just a reminder: Ben Bernanke has been wrong before.