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Get ready for the economic collapse of the State of California. Between debt, deficits and bad policies, nothing will save us from the failure of Sacramento.
Now another major problem.
"We had Chris Whalen on TechTicker today. He says there's no bailout coming for California--or, for that matter, any of the other bankrupt states. And that means big losses for muni-bond holders...
Municipal bonds have plummeted in recent days, as investors have suddenly focused on huge state and city budget deficits that there's no easy way to fix.
Nowhere has this collapse been more visible than California, which faces a massive $25 billion shortfall and red ink for as far as the eye can see."
What will happen? How will it happen? "The state won't immediately default, Whalen says. It will start by issuing the same sort of IOUs that it issued to by itself time during its budget crisis last year. But, eventually, the debts will have to be restructured, and this will result in those who own California's bonds receiving less than 100 cents on the dollar."
Smart people are getting out of California municipal bonds--only Arnold has money to burn to light his cigars.
California default is on its way.
More...
Now another major problem.
"We had Chris Whalen on TechTicker today. He says there's no bailout coming for California--or, for that matter, any of the other bankrupt states. And that means big losses for muni-bond holders...
Municipal bonds have plummeted in recent days, as investors have suddenly focused on huge state and city budget deficits that there's no easy way to fix.
Nowhere has this collapse been more visible than California, which faces a massive $25 billion shortfall and red ink for as far as the eye can see."
What will happen? How will it happen? "The state won't immediately default, Whalen says. It will start by issuing the same sort of IOUs that it issued to by itself time during its budget crisis last year. But, eventually, the debts will have to be restructured, and this will result in those who own California's bonds receiving less than 100 cents on the dollar."
Smart people are getting out of California municipal bonds--only Arnold has money to burn to light his cigars.
California default is on its way.
More...