From: [email protected] 
[mailto:[email protected]] On Behalf Of Jack Bauer
Sent: Friday, December 25, 2009 3:52 AM
Subject: Small-business bankruptcies rise 81% in California

 


  

Small-business bankruptcies rise 81% in California
With credit tight and consumers still pinching their pennies, many business 
owners find they can't go on.
LINK 
<http://www.latimes.com/business/la-fi-smallbiz-bankruptcy22-2009dec22,0,3305684.story?track=rss>
  HERE 
http://www.latimes.com/business/la-fi-smallbiz-bankruptcy22-2009dec22,0,3305684.story?track=rss
 

 


 
<http://thecomingdepression.blogspot.com/2009/12/mother-of-all-financial-defaults-coming.html>
 Mother Of All Financial Crises Coming: California 


(snippet)
We’re left with the question: what happens when California defaults?

The worst case would be the mother of all financial crises. According to the 
California State Treasurer’s office, California has over $68 billion in public 
debt, but the Sacramento Bee’s Dan Walters has tried to count total California 
public debt, including that of local municipalities, and his total reaches $500 
billion. Whatever the amount, the impact of default could be larger than the 
debt amount would imply. Other states – New York, Illinois, New Jersey, for 
example – are in almost as bad shape as California, and they could follow 
California’s example. The realization that a state could default would shock 
markets every bit as much as when Lehman Brothers failed. Given the precarious 
state of our economy and the financial sector, another fiscal crisis would be 
disastrous, with impacts far beyond California’s borders.

What would a California default look like? In a sense, we’ve already seen 
California default, when that state issued vouchers. If any company tried that, 
they would be in bankruptcy court in days. Issuing vouchers didn’t trigger a 
California crisis because banks were willing to honor the vouchers. If banks 
refuse to honor the vouchers next time, employees and vendors won’t be paid, 
and state operations will come to a halt. This could happen if our legislature 
locks up and is unable to act on the current $21 billion problem.
 
<http://www.newgeography.com/content/001274-what-happens-when-california-defaults>
 LINK HERE

 

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