Comments on: When IOUs become currency http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: mei http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-7302 Wed, 30 Sep 2009 14:24:58 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-7302 Can’t state enough how important the sacrifices that go into wealth creation are.

Curious if anyone has caught this book yet? “The Richest Man in Town” by W Randall Jones. I’ve read half of it so far and let me tell you it is well worth it. Would like to hear what everyone else thought of it?

http://www.richestmanintown.com

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By: Michael Murphy, CFA http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4214 Wed, 15 Jul 2009 18:47:56 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4214 California IOUs are bid 97 cents on the dollar on Sacramento Craigslist – multiple buyers.

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By: Noumenon http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4184 Wed, 15 Jul 2009 04:41:41 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4184 I have to say it too: Ctrl-A, Ctrl-C. It’s a reflex for me before I hit submit on anything.

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By: mrmeercat http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4182 Wed, 15 Jul 2009 03:19:16 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4182 If you are a Californian it makes sense to advocate a bailout for your state, but for others, what would be the logic of subsidizing a process that makes poor choices? Why would a non-Californian go along with a bailout?

I don’t see the IOUs degrading US currency unless the Federal Reserve tries to peg the exchange rate. It is much more likely that the market price of IOUs will be 50% to 90%, and so therefore California will experience inflation of 100% or so. Or, you could look at it as a movement of money from the pockets of the recipients of IOUs to the State. In other words, a stealth tax.

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By: Mark Herpel http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4167 Tue, 14 Jul 2009 22:26:30 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4167 They are unconstitutional, that’s easy to see..however, I suspect before anyone can clear that up in court it will be past October already. No Fed money for CA is what DC is saying. Community currency would be very helpful for towns, counties and even regions but NOT statewide.
Mark
Editor Community Currency Magazine

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By: glory http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4132 Tue, 14 Jul 2009 15:54:14 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4132 what you’ve lost in rhetorical flourish, you’ve (more than) made up for in succinctness; I wish you’d lose more posts to Ecto! or, at least, provide an Ecto-loss-like (what’d you want to say if you lost your post, but in short form) concise summary ahead of your longer posts :P

also fwiw…
http://www.winterspeak.com/2009/07/sorry -state-of-mark-thoma.html
http://neweconomicperspectives.blogspot. com/2009/07/berkshares-buckaroos-and-bea r-dollars.html

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By: jzw http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4124 Tue, 14 Jul 2009 13:05:24 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4124 >>No way the rest of the country is on the hook to “rescue” the state with the 8th highest per capita income

Isn’t that the American way – for the poorest to bail out the richest.

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By: Craig http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4123 Tue, 14 Jul 2009 12:17:35 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4123 No bailout for California. They voted themselves bread and circuses, no tax increases, and no way for their government to fix things. No way the rest of the country is on the hook to “rescue” the state with the 8th highest per capita income (my state, for instance is 23rd), just so they can go on keeping their property taxes low.

Chrysler and GM had to go through bankruptcy to get their books cleaned up. California should have to reform its Constitution and budgetary process before this is even on the table. –Of course, if they did that, there wouldn’t _be_ a crisis. Or at least, no more in California than anywhere else.

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By: Matt Sherman http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4112 Tue, 14 Jul 2009 02:17:07 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4112 I use Windows Live Writer for blog posting. It’s like Word but built specifically for blogs.

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By: anonymous http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/comment-page-1/#comment-4109 Tue, 14 Jul 2009 01:39:50 +0000 http://blogs.reuters.com/felix-salmon/2009/07/13/when-ious-become-currency/#comment-4109 IOUs will now be the next level of sophistication in “financial innovation”. […] Now that the California has discovered a new mechanism to create money out of thin air, I expect other states to follow and they could all be traded in the exchanges pretty soon.

Why not take this further? You could combine IOUs from all 50 states (and maybe a few Argentinian provinces) and securitize them as IBS (IOU-backed securities). Then pool the IBSs into CIOs (collateralized IOU obligations) and divide those up into tranches…

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