Thread: California Runs Out Of Money Again, Threatens To Go Nuclear

ZeroHedge
Tyler Durden

California Runs Out Of Money Again, Comes Begging To Wall Street As Moody's Threatens To Go Nuclear On Muni Market

First New Jersey, now California. The cash-strapped state, which begged for, and got, a "bridge" loan from JP Morgan as recently as October 2010 (the same bank that recently bailed out Chris Christie), is asking for another bridge to the old bridge loan, ergo a "bridge bridge" loan.
http://www.zerohedge.com/article/broke- ... cy-funding

The excuse: the potential upcoming government shutdown, which would lock California out of the muni market.

Surely the fact that it already has little to no cash left was not a part of the equation. BusinessWeek reports: "California is considering seeking a bridge loan from Wall Street ahead of an Aug. 2 deadline for raising the federal debt ceiling, in case talks fail and send the bond market into turmoil, Treasurer Bill Lockyer said. Proceeds from the loan would be used to help pay the state’s bills until Lockyer can sell an estimated $5 billion of so-called revenue-anticipation notes, or RANs, scheduled for late August.

Without those notes, the state could run out of cash as it did in 2009, when it issued $2.6 billion of IOUs." Of course if the US is downgraded, Meredith Whitney's prediction will come true with a bang: as part of its warning yesterday, Moody's also threatened to downgrade 7000 municipal ratings which would halt RAN, and any other, issuance for an indefinite period of time.
http://www.businessweek.com/news/2011-0 ... raded.html

And while this is merely more M.A.D. posturing to help the debt ceiling dispute come to a speedy resolution, the fact that California is now forced to issue new bridge loans to "bridge" old ones is oddly troubling.


source: http://www.zerohedge.com/article/cal...nuclear-muni-m

related

So. Cal. - Grocery Stores Closing, Empty Food Shelves
http://www.alipac.us/ftopic-228858-0-da ... rasc-.html

Families Packing Up and Leaving California INVASION
http://www.alipac.us/ftopic-227237-days ... asc-0.html

BANKRUPT - California Declares Fiscal Emergency
http://www.alipac.us/ftopic-225353-days ... asc-0.html

INLAND EMPIRE SoCal Girl Talks About Economic Collapse
http://www.alipac.us/ftopic-230297-0-da ... rasc-.html
eal Stories of the Housing Collapse - Economic Collapse in America - Victorville Ca

http://www.youtube.com/watch?v=DyYmBKvm ... ure=fvwrel

330k homes going for 39k in CA - Economic Collapse in America

http://www.youtube.com/watch?v=opuSlrDy ... ure=relmfu

California homes being demolished to avoid city fines for being empty ...

VIDEO: http://www.youtube.com/watch?v=ZsgOaCZ2 ... re=related

http://www.youtube.com/watch?v=COy1YyVU ... ure=relmfu

CASH FOR KEYS ..

http://www.youtube.com/watch?v=nzACsGru ... ure=relmfu

when your broke your broke .. just like Florida

Dirt Broke

Ya might want to consider deporting all of those Illegal Aliens that caused you to raise taxes and chased off businesses as well as tax payers

Anybody trying to tell you California is solvent and positively contributes to the United States economy, offer to sell them a bridge in Fallujah.

They'll probably buy it ... using BAILOUT MONEY.

Originally Posted by AirborneSapper7

when your broke your broke .. just like Florida

Dirt Broke

Ya might want to consider deporting all of those Illegal Aliens that caused you to raise taxes and chased off businesses as well as tax payers

============================================

In normal times, with a government controlled by Americans and not powerful special interest globalist quislings like the Catholic Church-directed La Raza or the socialist ACLU or SPLC, America would do JUST THAT.

These are not normal times, and the entire political system designed to PROTECT AMERICA (namely the US Constitution) has been ABANDONED by corrupt self-serving politicians who THOUGHT they would be laughing all the way to the bank.

Turns out the invasion from Mexico they all helped protect and sponsor from secure congressional and senatorial seats of influence has turned into a nuclear bomb about to blow their arms and legs off.

quisling

A traitor who collaborates with an enemy force occupying their country.

related

Illegals Cost California Hospitals $1.25 Billion Annually
http://www.alipac.us/ftopict-243497-california.html

Riverside County officials endorse talks on California split
http://www.alipac.us/ftopict-243340-california.html

12 Counties secede from California?
http://www.alipac.us/ftopict-242314-california.html

Riverside County officials endorse talks on California split
http://www.alipac.us/ftopict-243340-california.html

Talk to a California Native who has lived there all their life and is now fleeing to (actually) save their life.

They'll tell you how back in the day of the Mexican Cesar Chavez farm labor revolution illegal aliens first became emboldened to openly picket for 'working rights' under the guise of 'human rights.' The State of California and the US Federal Government allowed this, and nothing has been the same since.

They will also tell you that these illegal alien farm workers went on to gain illegal identities by using the social security numbers of their children to establish legal residence and identities, then to RUN FOR PUBLIC OFFICE.

As more and more illegal aliens were elected to public office (by the sheer number of other American Mexicans and then illegal alien Mexican voting for them), ILLEGAL ALIENS TOOK OVER THE CALIFORNIA STATE GOVERNMENT.

Talk to any Californian who knows the history of that state first-hand for the past fifty years and they will confirm this.

This deceptive formula worked, and it has been used millions of times in every state of the country.

As goes California, so goes the rest of the country.

Perhaps California should seek a loan from its "Mother Country" of Mexico, the economy is doing pretty well there.....