Those IOUs the State of California is currently issuing join the Hall of Shame of auction-rate securities, CDOs, mortgage-backed securities and other such financial detritus on Second Market. Hey vultures, now’s the time to swoop in and buy and sell deeply dicey financial wreckage for pennies on the dollar.
Way to go, Governator and California legislature. Your incompetence and sluggishness has now resulted in California IOUs being traded as risky and illiquid. Given repeated chances over many months, you always choose to argue and do nothing until events forced you to do something. And even then, you fudged the facts and pushed debt into the future for someone else to deal with. It’s not often you get to see such mind-numbing irresponsibility and pigheadedness.