California: Bond bailout has yet to reach the market

The Orange County Register ^ | Sep 10,2002 | KAREN GAUDETTE Associated Press

[Ernest_at_the_Beach]

California is looking to recoup billions borrowed during power crisis, but the bonds haven't even been offered.

SAN FRANCISCO

[Ernest_at_the_Beach]

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[tubebender]

And how many new bonds will be on the November ballot for the suckers to pass on to their great grand kids ?

We may be the worlds fifth largest economy but we have a third world credit rating...

[paul544]

And we picked the loser Simon to run against this guy. Any half assed candidate could have beat Davis. And we pick a complete ass candidate. The stupid party rides again.

[AdamSelene235]

Didn't they refuse due diligence and claim they didn't have to disclose their books to the bond issuer?

That puts them right around Botswana in my credit rating book.

No offense intended to the good people of Botswana, mind you.

[Robert357]

I decided that with all of the State Controller's comments I would check out her website to see if there were any recent press releases.

Nope, but there was a detailed listing of the payments made against long term energy contracts.

The spreadsheet indicated that the State of California has "paid" $3,197,613,735.45 for power since the start of the power crisis. Interestingly a lot of the large payments occurred in July of 2002! I suspect that the large payments have started in earnest and will keep going each month for the next ten years.

If I read correctly between the lines, I suspect that this might be a big part of the cash flow problem the state will be facing and its need to borrow if it doesn't get things happening real quick

[Ernest_at_the_Beach]

$3,197,613,735.45

I just wanted to get that up to proper size!

[Ernest_at_the_Beach]

$3,197,613,735.45

Try again!

[Ernest_at_the_Beach]

$3,197,613,735.45

Try again!

[tubebender]

And we picked the loser Simon to run against this guy. Any half assed candidate could have beat Davis. And we pick a complete ass candidate. The stupid party rides again.

Rhinodan had huge edge over Simon and Jones going into the primary and he was so clever that he barely got 30% of the vote. How smart was that.

[Ernest_at_the_Beach]

Meanwhile Davis is building his campaign fund!

Truly obscene!

And there are comments on this forum about how Simon is crooked!

Unbelievable!

[A CA Guy]

So where the heck is Simon on this 2 months ago too?

[kellynla]

are you a FL or CA resident?

[Ernest_at_the_Beach]

Norm I borrowed your graphic!

[A CA Guy]

I think Davis is a whore in the very least, but the ability to fund raise does not make me think a politician is crooked.
Bush was a big raiser of funds and I wasn't offended with that either.

The funds aren't evil, who uses them might be.

[Ernest_at_the_Beach]

You think Davis is raising these funds without implied coertion?

Have you looked at

[Grampa Dave]

Do you get the feeling that they are holding off on these Banana Republic Junk Bonds until after the election.

The Kali Bravo Sierra that the left wingers push 24/7 in Kali's fish wraps and tv stations to cover up what Davis has done to this state will not fly on Wall Street.

Any mutual fund manager who buys these bonds unless they are discounted at about 80+% off face or par value should immediately be turned into the SEC for fraud due to stupidity.

[Ernest_at_the_Beach]

If they hold off until after the election and Davis loses, what should Simon do?

[A CA Guy]

I saw that and thought many days ago and thought it was great.

[randita]

Interestingly a lot of the large payments occurred in July of 2002! I suspect that the large payments have started in earnest and will keep going each month for the next ten years

This is not surprising. CA borrowed a lot of money on a short term basis in which initially the interest rate was around 7% or so. But in the long run, the interest was supposed to jump up to 11% or so. I guess the 11% has done kicked in.

The information about the spiraling interest payments is what made us Freepers sure that CA was facing a fiscal train wreck. They could only put off paying the piper for so long.

The PG&E lawsuit claiming breach of contract may hold up the bonds yet again. The bankruptcy settlement agreed on by PG&E's creditors was not the one the PUC wanted, so there may be a fight and further delay there as well.

I think the bond issue is going to be delayed for several more months.