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Standards and Poors has just dropped the credit rating for the State of California.
"As a result, it lowered its ratings on the state's $63.9 billion of general obligation debt by one notch to A-, which is four notches into investment grade. That is the lowest such rating for any state in the U.S. California also has a negative outlook, meaning future downgrades aren't out of the question."
California is now the LOWEST rated State in the nation--and it can get lower.
What out for March 1. As noted before, we could run out of cash on march 1--again.
"On Wednesday, S&P said it understands the government is seeking swift adoption of $8.9 billion of the $19.9 billion of budget solutions in the proposal because if the legislature doesn't approve them by March 1, the full amount of savings may not be attainable. It also noted that forecasts of cash flows indicate the general fund will experience insufficient cash positions in March and July."
the California is in a fiscal crisis,and the cost of borrowing has gone up with this action. The lower the rating the higher the interest rates.
We are in a Depression, the Governor a budget with a $13 billion deficit to start (revenues that will never exist were used to "balance" the budget), the legislators are not acting like we are in an emergency.
Time for a major voter revolt--get angry.
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"As a result, it lowered its ratings on the state's $63.9 billion of general obligation debt by one notch to A-, which is four notches into investment grade. That is the lowest such rating for any state in the U.S. California also has a negative outlook, meaning future downgrades aren't out of the question."
California is now the LOWEST rated State in the nation--and it can get lower.
What out for March 1. As noted before, we could run out of cash on march 1--again.
"On Wednesday, S&P said it understands the government is seeking swift adoption of $8.9 billion of the $19.9 billion of budget solutions in the proposal because if the legislature doesn't approve them by March 1, the full amount of savings may not be attainable. It also noted that forecasts of cash flows indicate the general fund will experience insufficient cash positions in March and July."
the California is in a fiscal crisis,and the cost of borrowing has gone up with this action. The lower the rating the higher the interest rates.
We are in a Depression, the Governor a budget with a $13 billion deficit to start (revenues that will never exist were used to "balance" the budget), the legislators are not acting like we are in an emergency.
Time for a major voter revolt--get angry.
More...
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