Posted on 07/26/2011 7:34:19 PM PDT by blam
California Borrows $5.4 Billion As Protection In Case U.S. Defaults
Grace Wyler
Jul. 26, 2011, 8:01 PM
UPDATE: 7:45pm, July 26
California went through with plans to borrow money from Wall Street today as a hedge against a possible U.S. default.
The AP reports that California State Treasurer Bill Lockyer secured $5.4 billion in short term loans from a group of banks, credit unions, and investment funds. The bulk of the loans come from Goldman Sachs and Wells Fargo, which each provided more than $1.4 billion.
The so-called "bridge loan" will allow the state to avoid a cash shortfall if Congress fails to raise the debt limit by the Aug. 2 deadline. from private investors.
"California had to obtain this interim financing to protect the state from the immediate, drastic consequences of a failure by Washington to resolve the debt ceiling impasse," Lockyer said in a statement. "I'm hopeful Congress and the president will do the responsible thing, solve the problem before it's too late, and not risk pushing the country into a financial and economic abyss"
The yield on the notes is 0.237 percent, compared with 1.4 percent California paid for short-term borrowing in 2010. The latest notes mature on Nov. 22, but the state may pay them off before.
(snip)
(Excerpt) Read more at businessinsider.com ...
I betchya they redesignate it later on and find other ways to spend waste it.
Somebody stupid enough to lend California money?
ROFL
“If you ever find yourself in a sinking ship, simply poke a hole in the other side of the ship to let the water out.”
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That’s the way The Stooges handled it.
California Communists.
The Three Stooges.
Same thing.
State workers with 5 years or more of service get lifetime healthcare with 0 copayment for $1.99 per year, in addition to their fat pensions with CPI’s.
It might be interesting to see what happens when the Wall Street fat cats repossess California.
Do California counties have to borrow a pantload of cash to tide them over when California defaults?
This is stupid.
You’re totally correct. However, more to the point, I wonder what his kick-back take is?
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