Commentaries

Money market funds and California RANs

September 3, 2009

There’s one group of investors that aren’t likely to jump at the chance to buy California’s short-term RAN notes when they go on sale later this week: money market funds.

California debt rush

September 2, 2009

Talk about a comeback. After a bruising budget fight that forced it to issue IOUs, California plans to sell as much as $10.5 billion in short-term debt later this month.

California hosts garage sale to raise funds

August 26, 2009

California Governor Arnold Schwarzenegger is pulling out all the stops with the state’s “garage sale” of unclaimed or unneeded merchandise. The idea came to him via a “tweet,” he’s using his Hollywood cache to juice bidding and it’s all in the name of belt tightening.

California IOU’s soon to be DOA

August 19, 2009

As J.P. Morgan Chase has seemingly been the only rock in the financial storm, it is not surprising that the bank is now helping California, lending it $1.5 billion. The money will enable the state to stop issuing IOU’s a month earlier than planned (on Sept. 4). The loan is essentially a bridge until the state sells $10.5 billion in short-term notes next month. Here’s Reuters’ story.

California’s topsy-turvy trickle-down

July 22, 2009

The proposed California budget is looking an awful lot like trickle-down economics. But instead of the classic theory of wealth at the top seeping down to the bottom, the budget would have the state push losses down the pecking order to local governments.

California IOUs don’t look so hot anymore

July 20, 2009

Reuters is reporting that California lawmakers are close to inking a deal to close the $26.3 billion budget gap. You know what that means: no more IOUs. So don’t expect to see the IOUs popping up on a trading screen near you.

Niche broker-dealer ready to trade IOUs

July 14, 2009

For those eager to buy or sell California IOUs, SecondMarket, a niche broker dealer that specializes in hard to trade assets, will launch its trading platform for the warrants on Wednesday.

The constitutionality of California IOUs

July 13, 2009

Matt Yglesias questions here whether California is violating the constitution by issuing IOUs.

Are IOUs securities?

July 9, 2009

That’s the question lots of folks are asking as they try to figure out how to potentially make money from the billions of dollars in IOUs being sent out by California this month.

Paying taxes with California IOUs?

July 8, 2009

From the AP via the Sacramento Bee, it looks like a lawmaker is proposing that California follow the Argentine model.