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Old 2009-07-12, 16:24   Link #2945
Vexx
Obey the Darkly Cute ...
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Join Date: Dec 2005
Location: On the whole, I'd rather be in Kyoto ...
Age: 66
Quote:
Originally Posted by mg1942 View Post
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.
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.
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