lynnf
08-15-2010, 07:46 PM
http://www.lewrockwell.com/orig5/seiler11.1.html
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The state’s debt currently stands at $68.8 billion, according to Treasurer Bill Lockyer’s Web site. The cost to service the debt is $5.5 billion in fiscal 2010–11, H.D. Palmer told me; he’s the deputy director for external affairs at Gov. Arnold Schwarzenegger’s Department of Finance.
Last December, the possibility of default was brought up by Bill Watkins, an economist at California Lutheran University in Thousand Oaks. He wrote on his blog:
In my opinion, California is now more likely to default than it is to not default. It is not a certainty, but it is a possibility that is increasingly likely….
Already, we’ve seen California officials surprised with the interest rates they have had to pay. What happens if no one buys California’s debt? We saw last September [2008] what happens when lenders refuse to lend to large creditors.
...
...
The state’s debt currently stands at $68.8 billion, according to Treasurer Bill Lockyer’s Web site. The cost to service the debt is $5.5 billion in fiscal 2010–11, H.D. Palmer told me; he’s the deputy director for external affairs at Gov. Arnold Schwarzenegger’s Department of Finance.
Last December, the possibility of default was brought up by Bill Watkins, an economist at California Lutheran University in Thousand Oaks. He wrote on his blog:
In my opinion, California is now more likely to default than it is to not default. It is not a certainty, but it is a possibility that is increasingly likely….
Already, we’ve seen California officials surprised with the interest rates they have had to pay. What happens if no one buys California’s debt? We saw last September [2008] what happens when lenders refuse to lend to large creditors.
...