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The State of California will pay interest on the IOU's it issued, and the taxpayers wind up with the bill.
Then when folks turn their IOU's in to their banks--the banks will make $30 bucks for cashing them!!! Imagine if a check had a $30 surcharge? "Instead, its customers will have to pay $30 to claim their extra cash a sum that would likely exceed whatever interest there is to be earned."
Worse for the big IOUs' the carrying costs of the lack of money ends the value of the interest earned on them. "Clint McCoy, whose Milpitas-based French Fry Xpress traded in $350,000 in IOUs this month, said it's better than nothing but barely. Much of the $1,100 he earned in interest went directly toward the line of credit he drew from until the state got its house in order.
"The interest they gave us? It amounted to absolutely nothing," he said."
This is fraud by the State of California. Sadly, no DA will prosecute.
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Then when folks turn their IOU's in to their banks--the banks will make $30 bucks for cashing them!!! Imagine if a check had a $30 surcharge? "Instead, its customers will have to pay $30 to claim their extra cash a sum that would likely exceed whatever interest there is to be earned."
Worse for the big IOUs' the carrying costs of the lack of money ends the value of the interest earned on them. "Clint McCoy, whose Milpitas-based French Fry Xpress traded in $350,000 in IOUs this month, said it's better than nothing but barely. Much of the $1,100 he earned in interest went directly toward the line of credit he drew from until the state got its house in order.
"The interest they gave us? It amounted to absolutely nothing," he said."
This is fraud by the State of California. Sadly, no DA will prosecute.
More...