[enron_by_the_sea]

Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…

http://latimesblogs.latimes.com/money_co/2009/07/as-predicted-the-securities-and-exchange-commission-late-today-decided-that-californias-ious-are-securities-under-the-a.html

I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……

“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”

IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”

Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.

[enron_by_the_sea]

Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…

http://latimesblogs.latimes.com/money_co/2009/07/as-predicted-the-securities-and-exchange-commission-late-today-decided-that-californias-ious-are-securities-under-the-a.html

I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……

“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”

IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”

Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.

[enron_by_the_sea]

Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…

http://latimesblogs.latimes.com/money_co/2009/07/as-predicted-the-securities-and-exchange-commission-late-today-decided-that-californias-ious-are-securities-under-the-a.html

I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……

“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”

IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”

Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.

[enron_by_the_sea]

[quote=flu][quote=recordsclerk]The power of the HELOC has been known to erase stereotypes.[/quote]

I was referring to something else. But if you don’t get it never mind. I won’t bother to explain it, otherwise I would sound like a shithead. I’ll let some other asian dude explain it.[/quote]

LOL!!!

BTW this is asia
http://upload.wikimedia.org/wikipedia/commons/7/7f/Location_Asia.svg

[enron_by_the_sea]

[quote=flu][quote=recordsclerk]The power of the HELOC has been known to erase stereotypes.[/quote]

I was referring to something else. But if you don’t get it never mind. I won’t bother to explain it, otherwise I would sound like a shithead. I’ll let some other asian dude explain it.[/quote]

LOL!!!

BTW this is asia
http://upload.wikimedia.org/wikipedia/commons/7/7f/Location_Asia.svg

[enron_by_the_sea]

[quote=flu][quote=recordsclerk]The power of the HELOC has been known to erase stereotypes.[/quote]

I was referring to something else. But if you don’t get it never mind. I won’t bother to explain it, otherwise I would sound like a shithead. I’ll let some other asian dude explain it.[/quote]

LOL!!!

BTW this is asia
http://upload.wikimedia.org/wikipedia/commons/7/7f/Location_Asia.svg

[enron_by_the_sea]

[quote=flu][quote=recordsclerk]The power of the HELOC has been known to erase stereotypes.[/quote]

I was referring to something else. But if you don’t get it never mind. I won’t bother to explain it, otherwise I would sound like a shithead. I’ll let some other asian dude explain it.[/quote]

LOL!!!

BTW this is asia
http://upload.wikimedia.org/wikipedia/commons/7/7f/Location_Asia.svg

[enron_by_the_sea]

[quote=flu][quote=recordsclerk]The power of the HELOC has been known to erase stereotypes.[/quote]

I was referring to something else. But if you don’t get it never mind. I won’t bother to explain it, otherwise I would sound like a shithead. I’ll let some other asian dude explain it.[/quote]

LOL!!!

BTW this is asia
http://upload.wikimedia.org/wikipedia/commons/7/7f/Location_Asia.svg

[enron_by_the_sea]

According to this latest LA Times article perhaps people who make a business out of trading them might need to register with the SEC
http://www.latimes.com/business/la-fi-california-ious7-2009jul07,0,3106808.story

Meanwhile, the Municipal Securities Rulemaking Board, a national body that regulates the trading of municipal debt, is looking into whether the IOUs should be considered securities.

If they are, anyone who makes a business out of trading them could be breaking federal law if the business is not registered with the Securities and Exchange Commission, said Ernesto Lanza, general counsel of the board.

The IOUs have “all the hallmarks of being a security,” Lanza said.

But the state controller’s office, which issues the IOUs, said they weren’t securities.

“They are a form of payment,” said Garin Casaleggio, a spokesman for Controller John Chiang.

[enron_by_the_sea]

According to this latest LA Times article perhaps people who make a business out of trading them might need to register with the SEC
http://www.latimes.com/business/la-fi-california-ious7-2009jul07,0,3106808.story

Meanwhile, the Municipal Securities Rulemaking Board, a national body that regulates the trading of municipal debt, is looking into whether the IOUs should be considered securities.

If they are, anyone who makes a business out of trading them could be breaking federal law if the business is not registered with the Securities and Exchange Commission, said Ernesto Lanza, general counsel of the board.

The IOUs have “all the hallmarks of being a security,” Lanza said.

But the state controller’s office, which issues the IOUs, said they weren’t securities.

“They are a form of payment,” said Garin Casaleggio, a spokesman for Controller John Chiang.

[enron_by_the_sea]

According to this latest LA Times article perhaps people who make a business out of trading them might need to register with the SEC
http://www.latimes.com/business/la-fi-california-ious7-2009jul07,0,3106808.story

Meanwhile, the Municipal Securities Rulemaking Board, a national body that regulates the trading of municipal debt, is looking into whether the IOUs should be considered securities.

If they are, anyone who makes a business out of trading them could be breaking federal law if the business is not registered with the Securities and Exchange Commission, said Ernesto Lanza, general counsel of the board.

The IOUs have “all the hallmarks of being a security,” Lanza said.

But the state controller’s office, which issues the IOUs, said they weren’t securities.

“They are a form of payment,” said Garin Casaleggio, a spokesman for Controller John Chiang.

[enron_by_the_sea]

According to this latest LA Times article perhaps people who make a business out of trading them might need to register with the SEC
http://www.latimes.com/business/la-fi-california-ious7-2009jul07,0,3106808.story

Meanwhile, the Municipal Securities Rulemaking Board, a national body that regulates the trading of municipal debt, is looking into whether the IOUs should be considered securities.

If they are, anyone who makes a business out of trading them could be breaking federal law if the business is not registered with the Securities and Exchange Commission, said Ernesto Lanza, general counsel of the board.

The IOUs have “all the hallmarks of being a security,” Lanza said.

But the state controller’s office, which issues the IOUs, said they weren’t securities.

“They are a form of payment,” said Garin Casaleggio, a spokesman for Controller John Chiang.

[enron_by_the_sea]

According to this latest LA Times article perhaps people who make a business out of trading them might need to register with the SEC
http://www.latimes.com/business/la-fi-california-ious7-2009jul07,0,3106808.story

Meanwhile, the Municipal Securities Rulemaking Board, a national body that regulates the trading of municipal debt, is looking into whether the IOUs should be considered securities.

If they are, anyone who makes a business out of trading them could be breaking federal law if the business is not registered with the Securities and Exchange Commission, said Ernesto Lanza, general counsel of the board.

The IOUs have “all the hallmarks of being a security,” Lanza said.

But the state controller’s office, which issues the IOUs, said they weren’t securities.

“They are a form of payment,” said Garin Casaleggio, a spokesman for Controller John Chiang.

[enron_by_the_sea]

[quote=Zeitgeist]Our
In my opinion, the post office, schools, the DMV all should be privatized. Whatever the government touches it ruins.[/quote]

Yes, private sector will do the same great job that they pulled off with banks, healthcare etc.

Question: What is the solution to XYZ problem?

Republican Answer: Cut taxes, reduce spending, private sector, deregulation.

Democrat Answer: more taxes, more spending, public sector, regulation.

[enron_by_the_sea]

[quote=Zeitgeist]Our
In my opinion, the post office, schools, the DMV all should be privatized. Whatever the government touches it ruins.[/quote]

Yes, private sector will do the same great job that they pulled off with banks, healthcare etc.

Question: What is the solution to XYZ problem?

Republican Answer: Cut taxes, reduce spending, private sector, deregulation.

Democrat Answer: more taxes, more spending, public sector, regulation.

[Author]

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