Thursday, February 25, 2010

On the Road to Bankruptcy: Watchout Greece, Here Comes California

California just cancelled a $2 billion general obligation bond sale.

Jane Wells tweets:
CA cancels $2b bond sale after legislature fails to approve cash management flexibility bill Treasurer said he needed to attract investors.
This does not mean bankruptcy, but it is another step in that direction. Remember, the debt that needs to be raised is $30 billion, not $2 billion. If Cali is having trouble at the $2 billion marker, how the hell are they going to get to $30 billion?


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