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CA debt now riskier then.... Kazakhstan's!!!!!
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  1. #1
    SoCalEuro Member mike's Avatar
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    CA debt now riskier then.... Kazakhstan's!!!!!

    We are all screwed!!!!!!

    http://www.huffingtonpost.com/2010/0..._n_481058.html

    Just how dangerous is California's budget crisis?

    Extremely dangerous, according to two recent evaluations of California's debt by financial industry insiders.

    California's debt is seen by investors as riskier than Kazakhstan's, according to Bloomberg News. Five-year credit default swaps tied to California's debt, which are a key measure of the market's belief in the likelihood of default, are actually trading at 100 basis points above those of Kazakhstan. In other words, the market believes a developing country of just 15.7 million people is actually less likely to default on its debt than California, which makes up the eighth-largest economy in the world.

    Here's Bloomberg News:

    Kazakhstan and California, the lowest-rated U.S. state, share a Baa1 ranking, three steps above non-investment grade, from Moody's Investors Service. California was given a BBB by Fitch Ratings and A- by Standard & Poor's, four levels above non-investment grade. Both companies rate Kazakhstan lower, at BBB-, one step above high-risk, high-yield junk.

    And last week, Jamie Dimon, the CEO of JPMorgan, the nation's second largest bank, warned that California's $20 billion budget gap could pose a bigger risk than the Greek debt crisis. Here's Dimon: "Greece itself would not be an issue for this company, nor would any other country. We don't really foresee the European Union coming apart."

    In January, Standard & Poor's cut California's debt rating amid concerns that the state was not doing enough to bolster its budgetary woes. Reporting on the downgrade, Reuters pointed out that there are several countries with debt trading at levels above California's: "The cost to insure California's debt with credit default swaps is now higher than debt of developing countries, such as Kazakhstan, Lebanon and Uruguay. It costs $277,000 per year for five years to insure $10 million in California debt, compared with $172,000 for Kazakh debt."
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  3. #2
    SoCalEuro Member Moderator URQ's Avatar
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    Re: CA debt now riskier then.... Kazakhstan's!!!!!

    Just give us a bailout whats the problem everyone else is getting them?

    There I fixed or problem now I can be the next governor.

  4. #3
    Geek Administrator ncttrnl's Avatar
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    Re: CA debt now riskier then.... Kazakhstan's!!!!!

    Kinda makes you wonder where all of our tax dollars go. Our taxes are generally higher than other states with the exception of property taxes. We make up for those by having higher property values.
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  5. #4
    SoCalEuro Member mike's Avatar
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    Re: CA debt now riskier then.... Kazakhstan's!!!!!

    Politicians are great at spending money when its not theirs.

    Cliff notes on discretionary funding:
    $90K in cauffers
    $200K for website promotion
    $2500 to ACORN
    $700K to renovate an office(?!)

    http://www.latimes.com/news/local/la...,3010109.story
    "As I walk through the valley of death I fear no one, for I am the meanest motherf****r in the valley" - George S. Patton
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  6. #5
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    Re: CA debt now riskier then.... Kazakhstan's!!!!!

    local government is the shadiest!

    my step mom just got a settlement for getting fired after reporting one of the City council for misspending/misreporting of funds. She was a City clerk. tsk tsk. Now the Feds are on his ass
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  7. #6
    Northwestern Ambassador Administrator madajb's Avatar
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    Re: CA debt now riskier then.... Kazakhstan's!!!!!

    Botnets are a profitable business.

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  8. #7
    SoCalEuro Member Lionsio's Avatar
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    Re: CA debt now riskier then.... Kazakhstan's!!!!!

    Thatīs what you get when a Film Actor is the governor, he can barely speak, how the citizens can expect him to manage a whole state?.

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