Big Banks Accept Bailout Money....But Not CA IOUs....

Discussion in 'Wall St. News' started by libertad, Jul 7, 2009.

  1. Every one of those blood sucking banks was bailed out by taxpayers (California taxpayers too) and now will not take an IOU from the State of California for the citizens of California.

    Is this guy for real? CA issues IOUs instead of money, run up a $25 billion deficit that is still growing, and this blogger is angry banks refuse promises of money? I applaud the banks for refusing this paper. CA dug its own grave, and deserve no pity from any one.
  2. bozwood


    wonder how many pennies on the dollar these IOUs would buy if you tried to exchange for gold? not many, is my guess

    I think the IOUs just end up on the fed's balance sheet and the banks get $s in return. is that a possiblility?
  3. da-net


    perhaps some other members might enlighten us on what I believe is a violation of the US Constitution Article 1 Section 10 by California.

    <b>"Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything 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."</b>

    Is what California has done totally illegal?
  4. chill man... no need to get that heated from what the op said lol