From the wires today:
LOS ANGELES/NEW YORK (Reuters) - California’s controller said on Wednesday that he would have to issue IOUs in a week if lawmakers can’t quickly solve a $24 billion budget deficit, and the state’s treasurer plans to tap a reserve fund to meet debt service costs. The measures came as a budget crisis deepened in the most populous U.S. state and the gridlocked legislature failed to pass a proposed $11 billion in cuts. “Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression,” Controller John Chiang said in a statement announcing that he would be forced to use IOUs to pay the state’s bills beginning on July 2.
Are we in the eye of the storm where all is calm?
June 24th, 2009 at 11:25 pm
They’ve done this before. IOU’s were mailed back into the state to pay taxes for a state contractor. Second language was Spanish, second currency was their IOU’s.
Insane.
June 25th, 2009 at 3:16 pm
I’m buying long dated California debt as a value play.
June 25th, 2009 at 3:26 pm
William
GO’s I hope
June 26th, 2009 at 4:56 pm
It’s a symptom of the whole country being in dreamland…With all of Obabma’s feel-good speeches, people have forgotten that, before wealth can be re-distributed,…you need wealth! California and the rest of the US is, as Michael Covel would say, BROKE!!!
Now is the time to hunker down, not to introduce healthcare, political wish lists, and windmills.