Big banks to stop cashing California IOUs

[CastleBravo]

So much for California's attempt at printing its own currency, which they called IOUs. That's what my dollar bill is, an IOU, isn't it? Unfortunately the Feds will now step in and prop up a failed system. That means I will pay without the benefit of service.

http://money.cnn.com/2009/07/09/news/economy/california_ious/?postversion=2009071014

[AVGWarhawk]

What a sorry state of affairs. Maybe some of the movie stars can start cutting some checks:D

[Buddahaid]

I move to rename my state the Republic of Ioua.

Buddahaid

[CastleBravo]

I move to rename my state the Republic of Ioua.

Buddahaid

right on!

[AVGWarhawk]

Might be over for CA before they know it.


http://www.foxnews.com/story/0,2933,531201,00.html?test=latestnews

[CastleBravo]

Might be over for CA before they know it.


http://www.foxnews.com/story/0,2933,531201,00.html?test=latestnews

What is mysterious is that after all these years of telling us the San Andreas Fault was a trouble spot it is now a mystery when it moves.

[Platapus]

When it comes to GDP, California itself ranks high on the list of the worlds COUNTRIES.

California should be rolling in cash. To me it is simply a case of runaway spending. They gotta do some serious cuts and yes serious cuts will hurt a lot of people. There is no way to cut without pissing someone off.

But it has to be done. :know:

[Buddahaid]

What is mysterious is that after all these years of telling us the San Andreas Fault was a trouble spot it is now a mystery when it moves.

Simple. It's as easy to figure out as getting CA government to pass a budget on time as required by law. The deep stresses are building. Tiny tremors of hope are mysterious and elusive. The experts are baffled, but know the big one is coming, just not when.

Seriously, all the science behind earthquakes is pretty recent history. Only a few decades of study since plate tectonics was figured out, and a model created. The big one will happen but this time it will be LA that gets creamed, and the window of when historically is now open.

Buddahaid

[MothBalls]

Might be over for CA before they know it.


http://www.foxnews.com/story/0,2933,531201,00.html?test=latestnews

Being in Ca. now, I don't worry about this. What's really going to happen when the big one hits the SA fault, California will become an island and the rest of the US is going to fall into the Atlantic. Might even take Canada and Mexico with it.

[SUBMAN1]

What a bunch of idiots legislating themselves into a corner that they can't get out of. The pie in the sky state. The communists tried this and went bankrupt, so California goes Communist and what happens? Same damn thing. A free people with minimal laws is what it takes for prosperity. Anyone not on that bandwagon will eventually fail.

History has spoken once more.

-S

[Sea Demon]

What a bunch of idiots legislating themselves into a corner that they can't get out of. The pie in the sky state. The communists tried this and went bankrupt, so California goes Communist and what happens? Same damn thing. A free people with minimal laws is what it takes for prosperity. Anyone not on that bandwagon will eventually fail.

History has spoken once more.

-S


You're so right Mr. Subman. I am utterly dismayed at what leftist Democrats have done to my state. Alot of people don't understand why I am so ardently against Democrats and what they seek to do with their false utopian idealism. Well, I've been watching Democrats ruin my state for more than 2 decades straight.

They have done this with overwhelming welfare programs, demands that state taxpayers educate illegal aliens from other countries and provide them state funded benefits, watch government unions (read Democrat unions) milk the system for outrageous benefits and pensions, and then the end result is the productive class (taxpayers-those who pay the bills) continue to stream out of the state en masse. And now they disincentivize business investment due to the overreaching, unnecessary, and nonsensical enviro "green" policies. Many of us knew this day would eventually come.

I hope the end result of this is the deadbeats in this state, and the myriad of others who milk the system move to other states where they can leech off of the taxpayers there. I recommend a "tolerant" "feel good" state like Vermont or Oregon. They are ripe to go through the lesson next.

In a way, I'm enjoying watching liberal policy fail here. As you say...just another case study for the history books.

[Buddahaid]

Perhaps the feds should take a bigger responsibility in securing the national border and dealing with the people who cross illegally. Then all the states can share the burden of dealing with the human equation. The problems much simpler when your state only borders other states.

Buddahaid

[mookiemookie]

...or maybe it's because the largest boom and bust in the housing market was in California and now that the bubble is popped, foreclosures are rampant and tax revenues have plunged much like they did in 2002 after the tech bubble, they're paying the piper.

But heck, why go with a reasoned and fact based analysis when we can blame brown people and Democrats.

A free people with minimal laws is what it takes for prosperity. Deregulation is what got us into this mess.

[CaptainHaplo]

Actually Mookie - the problem isnt one or the other - but BOTH!

Unwise loans to unqualified borrowers (some of whom are illegal btw) - along with the ever increasing demand of the state budget for additional tax moneys to support ever growing social programs - caused this.

Its not JUST the illegals. Its not JUST the social programs, or JUST the green "red tape" or JUST the housing market or JUST the economy.

Its not JUST the democrats - its not JUST the republicans.

Its the whole thing - taken in total. There is enough "blame" to go around - but what the state - and the country - need to do - is stop trying to point fingers and start making wiser decisions to fix the problem.

The issue most have - is that the current federal government is failing to do that - instead mortgaging the future in the hopes it saves the present, even when the data shows it isnt.