Quote:
Originally Posted by mg1942
I heard that CA IOU's carry a 3.7% TAX FREE interest rate.
Somebody with a pocketful of cash will make a killing on these things. They'll buy them at 90 cents on the dollar and then cash them in for the profit AND save tax money.
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One of those "unintended consequences" things.... apparently vultures are swooping in to buy offering pennies on the dollar preying on people who need cash *now* -- so the state and feds are investigating criminal charges.
I know Arnold asked banks to honor the IOUs right now (in which case the banks would collect the interest on them later)... but I haven't heard if any banks stepped up to the plate on that request.