Skip to comments.SEC Destroys California
Posted on 07/10/2009 7:37:39 AM PDT by rvoitier
Well now they've gone and done it:
"The staff of the SEC has expressed its belief that California's recently issued IOUs are 'securities' under federal securities law. As such, holders of these IOUs and those who may purchase them are protected by the provisions of the federal securities laws that prohibit fraud in the purchase or sale of securities," the agency said.
That was a mistake.
(Excerpt) Read more at market-ticker.denninger.net ...
The SEC did not destroy California. California committed suicide.
It is not at all difficult to see why this is happening.
The ELECTORAL VOTES of Taxifornia are critical to the Socialist Party.
California was destroyed by liberals far before the SEC.
Deport them all now
Without getting into the unnecessary “they did it to themselves” argument I really did wonder about these CA IOU’s.
If they were issued as 90 day type bearer bond notes with 3.75% interest how were they NOT subject to SEC regulation?
I saw some previews on TV. I was excited to see it, it was a 1/2 hour program deal and I’d never seen Borat.
This Bruno stuff was boring. I stopped watching after about 5 minutes.
Deport them all now
Then let's get started doing something about the illegal aliens...
CA has declared that selling their IOUs requires notarization of approved transfer from the original payee - practically prohibiting selling these "securities" for immediate cash.
The Soviet Union's last straw was inability to pay obligations. These IOUs are effectively non-transferrable low-interest high-risk securities - an obfuscated way of saying CA isn't paying obligations.
They won’t cower and submit.
They’ll rally for Aztlan.
Ya ready to take on 10,000,000 CA residents declaring state independence?
Maybe not interest and penalties, but possibly the principal. The Federal Govenment allows taxpayers to offset refunds against future payments of estimated tax. If a state, like California, allows such offsets, then that would be a good way to collect an unpaid refund.
Another reason why Texas must undertake its right under Union entry and secede from the mess that is now the USA
The man is quite correct.
Yeah, never mind that pesky Constitution.
I shudder to think what consequences all this Alinskyite destruction will bring.
Yes before they are 20,000,000.
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
I wonder if a company that does business with the state can send in their IOUs when their taxes are due. I don’t know how California does it but withholding and sales tax are usually submitted in most states at least quarterly. So if a business owes $50,000 in taxes and have an IOU for service render for $25,000 could they send in tyhe IOU + a check for $25,000?
Somehow I bet CA won’t accept their own IOUs as payment.
If you accept the IOU’s, then it is income taxable by the Feds.
How are you going to be able to pay federal taxes with an IOU?
If they are securities and go unpaid then you could apply to the SIPC for a claim of up to $500,000. That would leave the taxpayers (federal) stuck with California’s bills.
How convenient, then, that the Democrats passed a law a few years ago that devastated the availability of notaries public by imposing ridiculous training, exam, and continuing education requirements upon notaries. The "handbook" is over 50 pages long, but the maximum fee is $10, the same as it is in New Hampshire which only requires an application fee, oath, and a criminal background check.
I know people who'd been trying to adopt children while living in California, and at least one was eventually forced to give up due to the ridiculous expense and hassle of getting a document notarized, let alone an apostille from Sacramento as required for international court proceedings.
Oh, that’s funny.
In lieu of payment, issue IOUs which...
- return paltry interest
- are high-risk for non-payment on maturity
- are not legal tender for payment of any debts public or private
- cannot be transferred without notarization
- notaries are practically non-existent
Awright, it’s all but official: CA is done. Now, what is the outcome of the 6th largest economy in the world, and major food producer for the USA (anyone got the %?), going outright bankrupt?
“I’m dead, I just haven’t stopped moving yet.” - Zaphod
"You can't just arbitrarily deport millions of illegal aliens"
"Yeah, watch us"
While spectacular, things didn’t turn out particularly well for those two.
Lol! Good to know I am not the only one with a brain that jumps there first ; }
They died doing what they loved best: Deporting aliens back to the hell holes they came from.
Be my guest. Not exactly high on my personal list of life-fullfilling goals.
I'd describe it as California climbing out on the bridge and the SEC becoming impatient at the traffic tie-up and pushing it off.