Thursday, July 09, 2009

California's IOU - 2

Well, guess what. No one it seems wants to accept Terminator's IOU's!

The Wall Street Journal reported in yesterday's edition that a group of large banks had announced it would not accept IOUs issued by the state of California. The group includes the four horsemen of the financial crisis: Citigroup, Bank of America/Merrill/Countrywide, JPMorgan Chase/Bear Stearns/WaMu, and Wells Fargo/Wachovia.

California, were it a country, would be the 6th largest. Sad. But what happens now not only in California but in other deficit ridden states?

Stay tuned.

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