Posted on 03/31/2009 8:39:17 PM PDT by TenthAmendmentChampion
SAN FRANCISCO (MarketWatch) -- California's "liquidity problems" may force the state to seek federal backstops for sales of its short-term notes this summer, even though it received heavy demand from retail buyers in a recent bond sale, its state treasurer said Tuesday. California Treasurer Bill Lockyer said in an interview that the state is talking with Treasury Department staff, including Secretary Timothy Geithner, about getting federally issued letters of credit to back upcoming issues of short-term securities known as revenue anticipation notes.
California Treasurer Bill Lockyer says the state will offer a "nice yield" on its upcoming bond sale, expected next month, and that he will market the issue to European banks. Stacey Delo reports.
Lockyer also said the state will probably issue about $12 billion to $16 billion revenue anticipation notes this summer.
But it may have trouble getting private banks to issue letters of credit to secure the notes, a possibility that's prompted it to seek government backup. "What we're starting to talk to them about is ... short-term liquidity problems" at the state and its municipalities, he said.
(Excerpt) Read more at marketwatch.com ...
Well, the socialist liberal madness in California meets the Feds. The libs that are destoying my state, just cannot stop spending and borrowing — we have already set record debt of in excess of $40 BILLION. And they just won’t stop.
To top it off in good liberal fashion, they have just given us ANOTHER MAJOR TAX INCREASE making Taxifornia the most heavily taxed state in the country. They are driving business and idividuals out of the state — the ones that pay the bills — so like the Feds, they are on a death spiral of tax-and-spend radicalism that will certainly finish off Taxifornia which was, at one time, the leading state in the nation in EVERY RESPECT. Now it sits at the bottom, due the liberal touch. A total disaster.
>We can’t be forced through Federal taxation to pay the general operating expenses of another state.
FedGov: Watch me!
UNConstimitutional? Wat’s dat?
Dohnoh. usta hab one.
C-R-I-M-E. When will we wake up and dispense with such leaders?
Why don't they just lease oil drilling rights?
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