Posted on 07/07/2009 8:14:29 PM PDT by Frantzie
A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.
(Excerpt) Read more at online.wsj.com ...
Well, what about Monopoly money?
State Controller John Chiang said that without IOUs, California would run out of cash by July's end.
Shows you the type of real rocket scientist they've got running that stupid state.
One of the guys posting in the forums of WSJ made the same observation. Just unreal.
Why would any sane banker want CA IOU’s after what happened to the Chrysler and GM bond holders?
When CA finally crashes, Obummer, the Fascist, will declare all of that stuff moot for the good of the masses.
The banks couldn't make change.
California wants the banks to basically loan it money.
Lucky for Kalifornia that 0bama is in charge!
Banks don’t have too much choice in the matter.
Democrats want to destroy our democracy and Republicans are more than willing to stand by and watch it happen.
What they want to destroy is the republic. If California defaults, and is bailed on on the same terms as GM and Chrysler, they are arguably no longer a sovereign state.
I might be willing to buy about $1000 in face value for 5 cents on the dollar. Even with a round of hefty inflation, they should still be worth a little more than that in a few years.
If the banks did take them, I wonder how the regulators would make them account for them on the books.
Awesome. Credit default swaps on California IOUs, here we come!
Obama should take over all the banks, then there would be enough money for everyone!
Bank of America apparently accepting them.
Good reason to get out of BofA!
Great point about accounting for them on their books. Obvious but I did not think about it. What a joke. They have a bank audit and bank is holding $300 million in IOUs were are uesless.
I mean if anyone thought CA was anywhere near solvency they could have gone back to the bond market as they always had to paper over the problem. I am not sure if the credit market is frozen but I heard it almost is.
Banks are cutting consumer lines of credit unless people have stellar credit.
BofA - the bank for illegals. I once had them call me and told them I would never do business with them.
Public employee unions, along with the Democrat stooges they put in office, along with stupid left-wing voters, have conspired to ruin a once great state.
The same can be said of the Fed as well. Their "porkulus" bill has already done enough damage to our future financial situation, and they are thinking about borrowing more?
It only goes to prove that Libtards never want to give up on "Utopia", even when there's not a dime left to pay for it.
Well they should just pass a law requiring banks to take the worthless paper. :)
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