Troubled California to Restructure Debt Sales (Guess what you are already bailing out CA!)

Financial Times ^ | November 18, 2010 | Nicole Bullock

[C19fan]

The US state of California on Wednesday said it would restructure upcoming bond issues as it tries to raise $14 billion in the middle of a sell-off in the municipal bond market.

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The decision to shift more of the sale to a government-subsidized market for municipal bonds would lower the cost of the new debt.

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The state on Wednesday said it would cut the size of a sale of traditional tax-exempt bonds by $750 million to $1 billion, shifting the borrowing to a planned sale of taxable debt, which will price on Friday. Of the $2.75 billion of taxable debt it is now selling, some $2.5 billion will be BABs. The tax-exempt bonds price next week.

[C19fan]

Basically CA is borrowing using Build America Bonds where a third of the interest is paid for by the Federal Government; your Federal yax dollars are guaranting interest to the holders

[EagleUSA]

Taxifornia will default within the next year or two.
The lib radicals have spent the state into total oblivion. And the FOOLS of the liberal electorate keep voting in those that throw money at them that the state does not have....such a pretty picture.

[PATRIOT1876]

*Taxifornia will default within the next year or two.
The lib radicals have spent the state into total oblivion. And the FOOLS of the liberal electorate keep voting in those that throw money at them that the state does not have*

NO.

The rest of us are not going to aid Kalifornia in making itself into a Third World Communist country.

If they are bent on charging businesses a hoax-based Cap n’ Trade Tax, let them pay for their fair

If they want to be Venezuela North, they can fund their own demise. Sell some of those $800,000 1800 square foot houses if they are determined to let everyone who comes in illegally from Mexico into their state.

[PATRIOT1876]

Got sentence cut off!

Meant to say:

“...let them pay for their fairytale global warming nightmare “science” bedtime story.”

[Oldexpat]

CA is advertising hard on conservative talk radio, KOGO for CA state bonds. They extended the deadline to allow more individual investors in. This is a retail pitch with no warning of the risks involved.

[paul51]

the investors in these bonds are betting the feds will bail them out.