California Treasurer: We will not default on bonds

[BigBagel]

Re: California Treasurer: We will not default on bonds

Argentina has its own currency, California does not. You won't see a California currency crisis, although the IOUs are damn close to being money and perhaps unconstitutional?

If the IOU's are transferable they will be used as money.

[Kadriana]

Re: California Treasurer: We will not default on bonds

Anyone have any idea how many people are suppose to get IOU's?

[vanvaley1]

Re: California Treasurer: We will not default on bonds

You drop Prop. 13 out here and Obama has lost the state of California for the Democrats and himself next election.

[vanvaley1]

Re: California Treasurer: We will not default on bonds

Anyone have any idea how many people are suppose to get IOU's?

Question: Can a 'cease and desist' order be issued not to implement IOU dispersement? Might as well bring this thing to a head and put it back in the lap of the politicians. They work miracles when angels deliver a message and you put the fear of god in em. Just ask Paulson and Ben.

[Dridamse]

Re: California Treasurer: We will not default on bonds

Arnold Schwarzenegger declares “fiscal emergency” in California July 1st 2009



IOUs For every one the bill will be paid by humm.... by US?

[Casual Observer]

Re: California Treasurer: We will not default on bonds

Medved,

Where do you get this understanding of Obama demanding an end to Prop. 13 as a condition for a CA bailout?

I'm not saying it won't happen - if anything it would be a great excuse to put all the blame on the federal government and the CA deficit for a fiat removal of that law, but I'm curious as to whether you've seen specific policy statements on that by someone in the Obama administration.

Actually there's a lot of serious talk about a split roll.

All residential property (eventually maybe only primary residences) keep their prop 13.

All commercial property loses their prop 13.

It makes sense, considering the commercial properties charge market rent no matter what they pay in property taxes, so they're just pocketing the difference. There's also properties that rarely if ever change hands like manufacturing plants.

[WildspitzE]

Re: California Treasurer: We will not default on bonds

Maybe us Texans can bail out the United States.

Nah -- foreign aid is usually a waste of money.

LOL. I'm glad I have property in Texas to go to.

[WildspitzE]

Re: California Treasurer: We will not default on bonds

The fed govt already came to this conclusion. It is just a question of where is CA's pain threshold, what sacrifices it is ready to make. The obvious conditions for the help from the feds are more power for Obama's henchmen and higher taxes. Very likely, Obama will demand elimination of the prop 13 as a precondition for federal help.

Conclusions aren't reached until the decisions are made on each of the final points during the final eve of a negotiation. The negotiations continue.

That said, I appreciate the insight. Is this conjecture re 13 and other conditions or have you read/have knowledge about the actual negotiating points? I'd love to hear what they are in toto.

[rabot10]

Re: California Treasurer: We will not default on bonds

Back in my day I would tell the girls a lie of similar magnitude

[newnewthing]

Re: California Treasurer: We will not default on bonds

If the IOU's are transferable they will be used as money.

California IOUs are transferable financial instruments (registered warrants). They pay interest (rates to be set July 2). they are, in effect, short term bonds. It will be interesting to see what sort of market develops around them. It is anticipated that some banks may redeem them at face. How long will that last? Interesting questions. We shall see.

[newnewthing]

Re: California Treasurer: We will not default on bonds

Anyone have any idea how many people are suppose to get IOU's?

5. When will I receive my registered warrant?
The registered warrants are issued like regular, or normal, warrants, and you will receive it on the same day you would have received a regular warrant.

http://www.sco.ca.gov/5935.html

[newnewthing]

Re: California Treasurer: We will not default on bonds

8. Who will continue to receive regular, or “normal,” pay warrants?
The State Constitution mandates that education and debt service have priority status, and the Controller will work to ensure there are sufficient funds to continue to make those payments with regular warrants. The State Constitution, federal law and court order also require that State payroll, CalPERS, CalSTRS, In-Home Supportive Services and Medi-Cal providers continue to be paid with regular warrants.
9. Who will receive registered warrants?
The State in July will issue registered warrants, or IOUs, for all other payments, including those to private businesses, local governments, taxpayers receiving income tax refunds and owners of unclaimed property.

[medved]

Re: California Treasurer: We will not default on bonds

Conclusions aren't reached until the decisions are made on each of the final points during the final eve of a negotiation. The negotiations continue.

That said, I appreciate the insight. Is this conjecture re 13 and other conditions or have you read/have knowledge about the actual negotiating points? I'd love to hear what they are in toto.

I am just too familiar with the sick liberal mind to miss this one. Unfortunately, I am too busy now (for better or worse I do have life outside of itulip) for any detailed research. Just google some liberal pundit (Krugman/Hudson/Stephanopoulos/Reich etc.) on proposition 13 and you will find it there. Whatever is on their tongue, is also on Obama's mind.

In general, since fed govt takes on more and more debt, it will have to control more and more assets. This will pacify some creditors for a while. E.g. China and Russia will see nothing wrong with the feds taking over - starting from banks and companies and ending with states. Who needs this unruly American system with the states and their rights? :rolleyes:.

It is also obvious, that every takeover will benefit Obama supporters first: unions, environuts, investors with the right (I mean, left) connections etc. Just look at the UAW role in GM takeover as an example. California is no different.

[newnewthing]

Re: California Treasurer: We will not default on bonds

Here's the daily tracking of income tax net by the controller's office. It ain't pretty.

http://www.sco.ca.gov/taxtracker.html

[audrey_girl]

Re: California Treasurer: We will not default on bonds

state won't take its own lousy ious:

http://www.sfgate.com/cgi-bin/blogs/...id=42871&tsp=1

uggh