At 3.75% annual return, wouldn’t California IOU’s be better than current CD’s right now for investment purposes?
Also…
1. State issues registered warrants @ 3.75% interest.
2. Major banking institutions will accept the registered warrants as cash.
3. Major banks can borrow money from the Fed at 0% or use TARP money to cover these warrants.
4. Major banks cash in warrants in Oct’09.
5. State of California gets Govt bail out indirectly.
6. State Congress delays even more because debt has been financed….
What is the risk? California going BK?
Would the registered warrants be redemable?
Does anyone have about $200-300k of registered warrants they want to sell?
