Bernanke Rejects Bailing Out State and Local Governments; A Look at Meredith Whitney's Municipal Bond Call

``Lawmakers also are drawing a line in the sand. Senior House "We have no expectation or intention to get involved in state and local finance," Mr. Bernanke said in testimony before the Senate Budget Committee. The states, he said later, "should not expect loans from the Fed."... Republicans say they will oppose any state requests for money. "If we bail out one state, then all of the debt of all of the states is almost explicitly put on the books of the federal government," House Budget Committee Chairman Paul Ryan said Thursday.''