The Worlds 10th largest economy (California) goes into default tommorrow (7/1/09)

Discussion in 'Economics' started by peilthetraveler, Jul 1, 2009.

  1. California officially goes into default tommorrow. They are not calling it default though. They are just calling it "giving out IOU's until they can figure out how to save/make money." CA is the 10th largest economy in the world. This should be the worlds biggest news story, but its not. On yahoo, of the top 4 news stories right now, 2 of them are about wacko Jacko. In yahoo finance, no mention of it (unless you really search into the back logs but its not in the top 10 stories.)

    This is the same thing zimbabwe was doing. Nobody reporting what was going on in the country, or anything that was reported was really not significant.

    I mean come on people...the 10th largest economy in the world is in default! WAKE UP! We are 13% of the my book that means 13% of the USA just defaulted. Only 87% to go, i guess. Tommorrow is the official beginning of the end. When people read the history books, they will mark July 1, 2009 as the offical day the USA started its collapse, in my opinion.
  2. AC3


    Wheels are officially off.......
  3. California is actually going to pay many state workers and recipients of state aid (e.g. elderly who receive medical benefit reimbursement) with interest bearing IOUs.
  4. Illum


    PA is also doing something similar. However, they have secured banks to do it for them. Loans to pay workers until they figure out they have to cut spending. See how long it takes.
  5. achilles28


    What did PA put up for collateral? Park land? Title to State buildings?

    :mad: :mad: :mad:
  6. toc


    give money into the government hands and they will waste it on many.

    give money into private hands and they will splurge it on chosen few.

    wonder whom to give money to and be in peaceful mindset?

    where is the world heading to? what system to adopt.

    although i still have lots of confidence in ethical capitalism. :D :cool:
  7. I am surprised that people are even willing to accept IOUs in the first place. There is no guarantee at this point (considering how bad California's finances are) that these will even be honored in the future.
  8. Right you are.

    There was a piece on Bloomberg Radio that I listened to in the car tonight; banks have not yet decided whether they will accept the PRK IOUs.

    This whole thing would be laughable if it wasn't so incredibly galactically tragic.
  9. orange county 1994
  10. With due respect, x 100, and much deeper into the shit, on a state level.

    I wouldn't be so sure PRK muni bonds are so fantastic, either, despite some exceedingly intelligent people saying they're as good as any security.

    I'm just thinking out loud, but does the Obama Admin and this Congress really have it in them to bail California out rather than forcing them into painful cuts and maybe some massive defaults?

    Bailout fatigue is high, and even sheeple are getting pissed.

    Also, Cali is not the only state in such a sorry condition; there are at least 8 others as of now.
    #10     Jul 1, 2009