Where is California's money to pay back IOUs coming from?

[StageLeft]

California, as we know, is giving out IOUs to certain people. Apparently without this they'd have been cash short already, but now projection is that they'll be cash short in September, and yet by then owe this IOU money (with its annual interest rate of 3.75). Taxes in the state continue to go down as unemployment goes up and the economy is sucking air, so where will this IOU money come from? Their date rating has been dropped to one above junk by one rating agency recently and most major banks as of Friday are no longer taking these IOUs.

 

[OCGuy]

All of this because the Democrats in the state congress refuse to cut programs in this welfare state....


This can easily be played out the same way on the national stage, just wait.

 

[fuzzybabybunny]

So has Cali been cutting programs and balancing its budget? I don't know what the latest news on this is. Last I heard is that they had a big meeting, were working through the night, and it all failed because they couldn't come to an agreement?

I just don't get it. They are losing revenue. So they decide to, uhhh... continue spending?

 

[StageLeft]

Originally posted by: OCguy
All of this because the Democrats in the state congress refuse to cut programs in this welfare state....


This can easily be played out the same way on the national stage, just wait.

It already is, but the US gov has deficits and I don't think that California can have them, hence this silliness.

 

[OCGuy]

Originally posted by: fuzzybabybunny
So has Cali been cutting programs and balancing its budget? I don't know what the latest news on this is. Last I heard is that they had a big meeting, were working through the night, and it all failed because they couldn't come to an agreement?

I just don't get it. They are losing revenue. So they decide to, uhhh... continue spending?

Well Arnie wont sign anything that just tries to raise taxes to fix the problem. The democrats keep trying to push a budget that does too much raising, and not enough cutting.


Sometimes there comes a point in a person's financial life that they need to decide what is neccesity and what is not. Why this cannot be transferred over to apply to government spending, I have no idea.

 

[OILFIELDTRASH]

I expect that the residents of California are going to pay for this one way or another. Your just going to have to live with the higher taxes. This conversation is too adult for my liking I havent got to say anything ridiculous and have typed a crapload of letters. Peace out.

 

[glenn1]

There's not money coming. The SEC is ready to rule that these IOU's are debt securities subject to the SEC's jurisdiction. Which in short means that CA IOU holders should get ready to receive a huge haircut on their "investment," if in fact the state doesn't default/renege on them altogether. Can't happen you say? Well, those secured debtholders in GM and Chrysler probably thought the same thing before the government wiped their ass with contract law in order to give a bigger share to the UAW than bondholders. Basically, if you have a California IOU, you're fvcked.

 

[fskimospy]

When a new budget is signed, it authorizes the state to disburse funds again. They aren't coming from anywhere in particular, they are funds available.

 

[herkulease]

Originally posted by: OCguy

Originally posted by: fuzzybabybunny
So has Cali been cutting programs and balancing its budget? I don't know what the latest news on this is. Last I heard is that they had a big meeting, were working through the night, and it all failed because they couldn't come to an agreement?

I just don't get it. They are losing revenue. So they decide to, uhhh... continue spending?

Well Arnie wont sign anything that just tries to raise taxes to fix the problem. The democrats keep trying to push a budget that does too much raising, and not enough cutting.


Sometimes there comes a point in a person's financial life that they need to decide what is neccesity and what is not. Why this cannot be transferred over to apply to government spending, I have no idea.

It doesn't transfer over because its not THEIR money. Think about it. When its your own money you're more careful with how you spend it. Politicians figure they'll just tax people and get money that way. We on the other hand can't magically come up with more income.

This applies not just to the ones we've had in Sacramento but also in DC.

Plus their concept of cuts is ridiculous. Instead of a 10% increase for something, it'll be 5% increase instead. They then run around claiming that they cut spending by 5%.

 

[marincounty]

Originally posted by: OCguy
All of this because the Democrats in the state congress refuse to cut programs in this welfare state....


This can easily be played out the same way on the national stage, just wait.

Democrats have agreed to cuts and some increases in taxes. Republicans will not agree to any tax increases. Now tell me who is being unreasonable?

Now the Governor is pushing all of his pet projects, which do very little, like cutting the pay of home health workers, who make like $10 an hour.

And neither the Governor or the legislators will do anything about what is really killing us, the overpaid cops and prison guards, and their outrageous pensions.

 

[her209]

Originally posted by: marincounty
And neither the Governor or the legislators will do anything about what is really killing us, the overpaid cops and prison guards, and their outrageous pensions.

So repeal the Three-Strikes Law. Voters can't expect to put people away for longer periods of time and not pay for the costs of incarcerating them.

EDIT: And don't forget Arnolds solution. Build more prisons!

 

[Xellos2099]

How about cutting free medic care to the illegal in CA and sell wood from the forest and then REPLANT it with new tree, that will cut down CA forest fire problem too. Don;t even try to flame me, everyone know it is part of the problem.

 

[marincounty]

Originally posted by: her209

Originally posted by: marincounty
And neither the Governor or the legislators will do anything about what is really killing us, the overpaid cops and prison guards, and their outrageous pensions.

So repeal the Three-Strikes Law. Voters can't expect to put people away for longer periods of time and not pay for the costs of incarcerating them.

Who pushed for the three-strikes law? Right-wingers and the police and prison lobbies.
There have been efforts to amend the law, but they were beaten back by the lobbyists.

The whole thing was a knee-jerk reaction to the killing of one poor girl, and the obvious failures of our justice system. Because one girl died we have to spend billions on prisons.
Reactionary politics at its best.

 

[Siddhartha]

It will give California's government and citizens time to make hard decisions.

 

[BrunoPuntzJones]

I've read that some folks are buying and trading CA IOUs. Any truth to this?

Sounds like a pretty good way to make a buck or two, or lose it depending on how things pan out.

 

[jpeyton]

Originally posted by: Skoorb
Where is California's money to pay back IOUs coming from?

Hopefully from OCguy's pocket.

:laugh:

 

[herkulease]

Originally posted by: marincounty

Originally posted by: OCguy
All of this because the Democrats in the state congress refuse to cut programs in this welfare state....


This can easily be played out the same way on the national stage, just wait.

Democrats have agreed to cuts and some increases in taxes. Republicans will not agree to any tax increases. Now tell me who is being unreasonable?

Now the Governor is pushing all of his pet projects, which do very little, like cutting the pay of home health workers, who make like $10 an hour.

And neither the Governor or the legislators will do anything about what is really killing us, the overpaid cops and prison guards, and their outrageous pensions.

Are we talking real cuts here? Or as I previously posted their concept of "cuts".

I can't seem to find anything the democrats have up on their website other than wasting time putting up youtube videos and press release blaming arnie or republicans. I would think they'd be holed up somewhere. I'm looking the the speakers website.

I dunno about you but every little bit helps. The excuse that cutting something is only a drop in the bucket is just is a cough out. you can make that argument with most things. What's a 100/200 million when we're in 24 billion dollar hole.

 

[StageLeft]

Originally posted by: BrunoPuntzJones
I've read that some folks are buying and trading CA IOUs. Any truth to this?

Sounds like a pretty good way to make a buck or two, or lose it depending on how things pan out.

NPR reported some were offering $.85 on the dollar, but as some banks still take them at parity there's no need yet to gamble on them.

 

[marincounty]

Originally posted by: herkulease

Originally posted by: marincounty

Originally posted by: OCguy
All of this because the Democrats in the state congress refuse to cut programs in this welfare state....


This can easily be played out the same way on the national stage, just wait.

Democrats have agreed to cuts and some increases in taxes. Republicans will not agree to any tax increases. Now tell me who is being unreasonable?

Now the Governor is pushing all of his pet projects, which do very little, like cutting the pay of home health workers, who make like $10 an hour.

And neither the Governor or the legislators will do anything about what is really killing us, the overpaid cops and prison guards, and their outrageous pensions.

Are we talking real cuts here? Or as I previously posted their concept of "cuts".

I can't seem to find anything the democrats have up on their website other than wasting time putting up youtube videos and press release blaming arnie or republicans. I would think they'd be holed up somewhere. I'm looking the the speakers website.

I dunno about you but every little bit helps. The excuse that cutting something is only a drop in the bucket is just is a cough out. you can make that argument with most things. What's a 100/200 million when we're in 24 billion dollar hole.

Democrats have agreed to cuts and some tax increases. Republicans only will agree to cuts with no tax increases. Which approach is more flexible and likely to work?

If it weren't for the 2/3 requirement to pass a budget it would have been settled a long time ago. Republicans are able to stonewall because the Democrats need a few Republican votes to pass a budget. And Arnold cannot get Republicans to support any tax increases, even though he is a Republican.

 

[Udgnim]

obviously banking on federal government bailout

 

[First]

Originally posted by: OCguy
All of this because the Democrats in the state congress refuse to cut programs in this welfare state....


This can easily be played out the same way on the national stage, just wait.

Jesus, your posts are literally terrible and sadly it's 22+ times a day.

 

[herkulease]

Originally posted by: marincounty

Originally posted by: herkulease

Originally posted by: marincounty

Originally posted by: OCguy
All of this because the Democrats in the state congress refuse to cut programs in this welfare state....


This can easily be played out the same way on the national stage, just wait.

Democrats have agreed to cuts and some increases in taxes. Republicans will not agree to any tax increases. Now tell me who is being unreasonable?

Now the Governor is pushing all of his pet projects, which do very little, like cutting the pay of home health workers, who make like $10 an hour.

And neither the Governor or the legislators will do anything about what is really killing us, the overpaid cops and prison guards, and their outrageous pensions.

Are we talking real cuts here? Or as I previously posted their concept of "cuts".

I can't seem to find anything the democrats have up on their website other than wasting time putting up youtube videos and press release blaming arnie or republicans. I would think they'd be holed up somewhere. I'm looking the the speakers website.

I dunno about you but every little bit helps. The excuse that cutting something is only a drop in the bucket is just is a cough out. you can make that argument with most things. What's a 100/200 million when we're in 24 billion dollar hole.

Democrats have agreed to cuts and some tax increases. Republicans only will agree to cuts with no tax increases. Which approach is more flexible and likely to work?

If it weren't for the 2/3 requirement to pass a budget it would have been settled a long time ago. Republicans are able to stonewall because the Democrats need a few Republican votes to pass a budget. And Arnold cannot get Republicans to support any tax increases, even though he is a Republican.

If it weren't for the 2/3 requirement the democrats will just ram shit through. As I previously wonder how many of these cuts are actually real cuts and not bogus ones. The news doesn't give us much(maybe there isn't anything). Last night their breaking news on the budget is that the speaker and someone else felt there was progress in talks. I'm so happy after months they have made some progress. :roll:

While the democrats agree to cut and tax increases suggests flexibility, if its fake cuts and ridiculous taxes its still stupid IMO. I have no problems with tax increase. I support them if they are fair and are accompanied with real cuts. As long as when things pick back up again we roll back some of the taxes and increase spending to programs that have been cut in a reasonable manner. Not rolling back by huge percent or increasing spending to "catch up" on missed years, it'll just put us right back to where we are now.

In any case neither side has put out anything other than blaming each other. The news just recycles the same story. If you happen to find a proposal with numbers is even better(I'm guess its not possible, I rarely ever see anything with actual numbers) post it or PM me. I can't find any.

 

[nullzero]

Herkulease,

Rolling back taxes lol, will NEVER happen!

 

[dmcowen674]

Anyone here get these IOU's?

Only then can the "value" of this paper be tracked.

 

[StageLeft]

Originally posted by: dmcowen674
Anyone here get these IOU's?

Only then can the "value" of this paper be tracked.

Surely they can be tracked in a way that doesn't necessitate a P&N member having one...