Posted on 07/10/2009 5:33:42 AM PDT by Red in Blue PA
"IOUs" the state of California has issued instead of payments amid its budget crisis are "securities" under U.S. law and their holders and potential buyers are protected by anti-fraud law, federal regulators said on Thursday.
The determination comes amid efforts by some entrepreneurs to establish a secondary market for the IOUs, which the government of the most populous U.S. state began issuing last week to vendors and to taxpayers owed refunds to maintain dwindling cash for priority payments, including payments to its bondholders.
(Excerpt) Read more at cnbc.com ...
So states can print their own money now?
Lets see, if I itemized deductions last year, and deducted state income tax withholding, I’ll have to add back and state refund as income the next year...but if the IOU hasn’t been traded for cash before next April 15, then what do I do?
If I sell them for half face value, can I take that as a loss?
My head is spinning, I think I’d just trade them in for carbon credits...presto, Califoria saves the planet again!
In the end, didn’t the Morlocks eat the Eloi?
I see lots of offers to buy the IOUs on Craigslist but no offers to sell. Somebody wants ‘em.
Has anyone posted an image of one of these turkeys?
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