http://finance.yahoo.com/news/SEC-t...1.html?x=0&sec=topStories&pos=4&asset=&ccode= IOUs paying 3.75% per year. This is the new economy...being forced to invest in California by being paid in CA IOUs. How do people not realize that this is CA printing its own money.
my question is: how the hell can I buy some???? I hear they're selling at 85% of par. that's found money...
But they might not be all that liquid. (Isn't BofA's redemption deadline tomorrow?) If you can't cash them in, then I think you might have to wait till October.
Place an ad on Craigslist Los Angeles/San Francisco/San Diego. There are many investors on CL willing to buy the IOUs. They are offering as little as 50 cents on the dollar to as much as 88 cents on the dollar....
Waiting until october is fine with me. if I buy at 85% of fave value and earn 3.75% APR. That is an excellent return in my books. I'd not throw my life savings at it, but maybe $100k or so... easiest $16k I'd ever make. shoot, I could put them on a credit cars and still make $.
Old saying in event driven investing, which is what this is seeing as you are wagering on the fact that they will pay and on a somewhat timely basis: It's your best trades (biggest returns) that kill you. If it were that easy, everybody would be doing it. Something will go wrong. How 'bout a rumour that anyone that cashes one will be audited every year for the next 20? Rather buy HD bonds maturing in 18 months for a 20% annualized return. At least they are cash flow positive. Good luck. (IOU 100k -Ahnold). -LMAO!!