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To: Frantzie
The IOUs are trading in an aftermarket and no one wants them.

I might be willing to buy about $1000 in face value for 5 cents on the dollar. Even with a round of hefty inflation, they should still be worth a little more than that in a few years.

If the banks did take them, I wonder how the regulators would make them account for them on the books.

12 posted on 07/07/2009 8:44:10 PM PDT by PAR35
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To: PAR35

Great point about accounting for them on their books. Obvious but I did not think about it. What a joke. They have a bank audit and bank is holding $300 million in IOUs were are uesless.

I mean if anyone thought CA was anywhere near solvency they could have gone back to the bond market as they always had to paper over the problem. I am not sure if the credit market is frozen but I heard it almost is.

Banks are cutting consumer lines of credit unless people have stellar credit.


16 posted on 07/07/2009 9:04:44 PM PDT by Frantzie (Remember when Bush was President and Americans had jobs (and ammo)?)
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