Posted on 09/29/2010 8:44:59 PM PDT by SmithL
Add a multibillion-dollar state bond sale and thousands of construction projects to the list of potential victims if the budget impasse drags on much longer.
State Treasurer Bill Lockyer is concerned that the state could miss an opportunity to sell bonds this fall to finance public works projects if state lawmakers and Gov. Arnold Schwarzenegger don't enact a budget soon.
"The treasurer said the first week of October is a critical week," said Lockyer spokesman Joe DeAnda. "Beyond that, it really puts a cramp on the amount of time that's left to put that deal together."
The problem is, the state can't sell bonds for infrastructure until it has resolved its cash needs to pay for general state services. To do that, the state needs to obtain short-term loans, known as Revenue Anticipation Notes, which require a budget to be in place.
(Excerpt) Read more at blogs.sacbee.com ...
The state is swirling down the toilet yet that big-spending Clown Brown is neck-and-neck in the polls. The state is doomed.
No way in hell would I buy a Calif muni bond.
You would have to be insane to finance the Marxist usurpers of Enemy Occupied California.
I was thinking all these construction jobs, they are going to sell bonds on, would be covered in some of Obamas shovel ready jobs in the stimulus bill...
More like falling off a cliff, but than they will probably re-elect Nancy P. and Gov Moonbeam will be the gov of CA for the 3rd time, Pete Stark will win again and tell us that the gov can do what ever it wants.
As a CA resident we are taxed up the butt, our roads are awful, the illegals are overtaking the state, I could go on but I might go into a deep depressed state.......so I will now pray for the residents of CA TO WAKE UP!
Just got got back from a trip to LA. Wow. We saw multiple (in the hundreds) home listings in Lancaster (small suburb NE of LA) that were dumping unfinished homes taken from broke builders, foreclosures, etc. at basically the same prices or below what I see in Texas. Most Californian home owners have to be completely under water at this point with no hope of recovery.
We then went down to a posh restaurant in the heart of Hollywood and Beverly Hills. Every other store front for city block after city block was available for lease or rent. Every restaurant we went into was a ghost town. We are talking all the customers sitting together in about 10 to 20 percent of the area of the restaurant. We walked the malls, more ghost towns, more closed stores. People are hanging on by their fingernails. If this X-Mas is bad, it may very well finish off the retailers in that state.
There is no way the banks are going to survive the commercial real estate defaults which have to be in the pipe line in CA. This is only going to get uglier.
As I was saying on another thread (a Whitman v. Brown debate), CA is pretty well hosed when one just looks at their fiscal problems. They’re deep, structural and now almost completely apolitical and developing on autopilot.
Can Moonbeam make things worse? Yea, no doubt. There’s no problem that Moonbeam can’t make worse with his idiotic hippy-dip mentality.
Can Whitman make these fiscal problems better? Not really. That’s the problem here - short of someone wielding dictatorial powers, no one installed in the governor’s office can really turn this mess around now.
The problems such as the one in this article hinge on the legislature, not the governor. The California legislature has shown a complete lack of understanding of how dire their situation is, or how the bond market perceives these types of problems when the legislature continues to play tiddlywinks and fool around with legislative nonsense instead of buckling down to deal with the budget and revenues.
Nor do they care. They're term limited. They have to figure out an exit strategy by pleasing SOMEBODY with money!
Have some compassion! /s
Yep, the final exhaustion has not happened yet. It's still only silent desperation and not blood in the streets.
Still some decent people living here and some decent communities.
Just a lot of nonsense going up at Sacramento.
Since Kali is sending out IOUs instead of checks, who in their right mind would buy a Kali Muni?
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