There's a difference?
Ping!
This makes it harder for a person with a $1 million IOU to sell it to you or me for $900,000. Illegal actgually.
This makes the situation worse.
Hmmm....
So no California can print “securities” to pay its bills...
In the old days that was called defaulting on your debts...
But the Federal government doesn’t want anyone to notice that California has defaulted on its debt so they put up smoke and mirrors and try to continue the illusion that California is a-okay...
But Mr. Obama can screw millions of General Motors and Chrysler shareholders and bondholders out of billions of dollars? Which way to the looking glass?
Maybe I could just print up some nifty IOU’s and go on a shopping spree. Or maybe.... I know, hire a new employee for my design company and pay him with IOU’s.
When money becomes worthless, then what are we going to use?
“California IOU’s can be considered securities?”
Bananas, bananas, 39 cents a pound!
IMHO
Thanks for posting TLR. Disgusting.
These con-men are putting us in dire straits. We need to bang the drumsticks/clubs on their collectivist heads...(music to read this thread by)...
http://www.youtube.com/watch?v=hDpMqKSrr7Y
I guess the next step wtill be Obama mandating that the banks accept the IOUs.
There's a difference?
some might find this interesting:
http://market-ticker.denninger.net/archives/1201-SEC-Destroys-California.html
Now pay attention to this. The big banks are INSOLVENT.
http://market-ticker.denninger.net/archives/1203-Stupidity-Bites-HARD-Dodd-and-Frank.html
Then there’s this:
http://zerohedge.blogspot.com/2009/07/cit-prepares-to-file-bankruptcy.html
CIT as in Citibank.
Is it going to happen? Who knows. But the notion that is might be out there is plenty scary, don’t you think?
Nothing like having an economic nitwit, who is “set for life” in charge of the situation, gang.
He gets to play with the “house money.”
Maybe they can get Citigroup to buy these “valuable” securities. If not, then Buffett and Soros will have to pick up the slack.
United States Constitution Article 1 Section 10: Limits on the States.
The final section of Article One outlines the limits on the powers of the States:
Section 10, Clause 1 (Contracts Clause): No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
WOW ! Fantastic ! Where can I buy some of these “securities” ?
So the IOUs are really 0% bonds? Interesting. I wonder if they’ve figured out how that is going to effect their already crappy bond rating.
5.56mm
I wonder how long it will take the SEC to give them a triple AAA rating?
California IOUs can be considered worthless securities
The regulator is recommending that the IOUs, which carry an annual interest rate of 3.75%, be regulated as municipal debt, a form of security, by the Municipal Securities Rulemaking Board. Identifying the IOUs as securities creates a regulated secondary market for them, which make it easier for their holders to sell them at a fair price. Tom Dresslar, a spokesman for California State Treasurer Bill Lockyer, lauded the SEC's announcement, saying in a statement: "The SEC has sent a pretty clear warning to folks who plan to profit by buying and reselling IOUs: If you're not registered as a municipal securities broker-dealer, you run the risk of violating federal law."Wow, it's almost as if the SEC is helping out some jokers who made campaign contributions to Obama. But what are the odds of that?