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Smart move by investors, they are no longer buying California bonds. Were I King for a day, I would demand Arnold sell everything he owns and buy California bonds--then see how he feels when he goes broke.
"Gov. Arnold Schwarzenegger has extended his seven years of destruction by wiping out the market for bonds, not just for California, but other states and cities. The Wall St. Journal:
America’s strapped states and cities took another hit Wednesday, with California seeing tepid demand for its latest bond sale and other governments pulling about $700 million worth of borrowing deals this week as investors continued stepping away from the municipal bond market.
The normally staid market has grown volatile the past week, posting its sharpest selloff in nearly two years, as investors demand higher interest rates to buy paper issued by states, cities and counties to finance their operations. Localities have been hammered by a drop in tax revenue amid the downturn—and unlike the federal government, most are barred constitutionally from running deficits…."
The Arnold legacy is higher taxes, massive deficits, failed schools, AB 32 killing jobs and revenues, add to that list the tanking of the market for California bonds. Arnold must be proud of the destruction he leaves behind. Wonder when he will move out of California?
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"Gov. Arnold Schwarzenegger has extended his seven years of destruction by wiping out the market for bonds, not just for California, but other states and cities. The Wall St. Journal:
America’s strapped states and cities took another hit Wednesday, with California seeing tepid demand for its latest bond sale and other governments pulling about $700 million worth of borrowing deals this week as investors continued stepping away from the municipal bond market.
The normally staid market has grown volatile the past week, posting its sharpest selloff in nearly two years, as investors demand higher interest rates to buy paper issued by states, cities and counties to finance their operations. Localities have been hammered by a drop in tax revenue amid the downturn—and unlike the federal government, most are barred constitutionally from running deficits…."
The Arnold legacy is higher taxes, massive deficits, failed schools, AB 32 killing jobs and revenues, add to that list the tanking of the market for California bonds. Arnold must be proud of the destruction he leaves behind. Wonder when he will move out of California?
More...