BamaBrian wrote:

CA has got to bite the bullet and shrink its government - and do it
*RFN*, or the state will go bankrupt and take down the CA economy with it.
Actually, they are already bankrupt! That's why
they are issuing these "IOU's", because they can't
pay for already encumbered expenses. They are
issuing a form of low-grade debt obligations in
the HOPE that they can pay them some time in the
future. if they were in a position where they
could clearly pay them, they could sell some
commercial paper to get real cash. The fact that
they CAN'T sell any paper means that the major
players all agree that they would not likely be
able to buy it back later. So, anybody that gets
stuck with these IOUs are likely to never get the
full value paid back. Hpoefully, they will get
something at some time in the future.

Jon