Michael -- what are you proposing? That California default? If California defaulted, what would happen the next time the State went to the bond market?
David Shemano --- Original Message--- To: [email protected] From: Michael Perelman <[email protected]> Sent: 6/29/2009 6:49PM Subject: [Pen-l] Bondage in the Bond Age: A California View >> In the midst of the Bush-Obama balance sheet bailout, one group stands out >> in its >> importance -- bondholders. I know -- a couple of times some bondholders have >> had to >> take a haircut to protect other investors. >> >> Here in California, with our $24 billion deficit, it seems like nothing -- >> absolutely nothing -- and threaten bondholders. Yes, some bondholders are >> pension >> funds or charitable organizations. A minority of Republicans along with a >> movie star >> governor have adamantly refused to raise taxes, especially those taxes that >> might >> affect the class of people who are bondholders. >> >> Education and healthcare are being slashed beyond recognition. My God, even >> prisons >> might be cut a bit. The state is also raiding the treasuries of cities and >> counties >> for funds. Their response will be the same as the state's: cut back on >> anything that >> might help the poor and if necessary extend the cuts to the middle class. >> All this >> so that California can payback its bondholders. No haircut here. They must >> be paid >> back in full. >> >> And the children, deprived of adequate education and health care, of course, >> they >> must make a modest sacrifice to protect the interests of bondholders. >> >> >> >> >> -- >> Michael Perelman >> Economics Department >> California State University >> Chico, CA 95929 >> >> Tel. 530-898-5321 >> E-Mail michael at ecst.csuchico.edu >> michaelperelman.wordpress.com >> _______________________________________________ >> pen-l mailing list >> [email protected] >> https://lists.csuchico.edu/mailman/listinfo/pen-l >> _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
