The State is issuing IOUs, and, generating rules for transferring their ownership. Credit unions seem to be cashing the IOUs at face value; check cashing outlets are cashing them at face value, minus fees; and, B of A, Wells, and Chase will cash them at face value, until Friday, 07.10.2009, and possibly accept them as collateral for loans thereafter. CA's IOUs are already being traded speculatively, on E-Bay and craigslist.
The first CA IOUs were no doubt printed last week, but there's no news of a bust yet, and no one seems to know whether investigators would be federal or state employees, since counterfeiting is generally a federal crime, but, CA IOUs are the California's funny money. Any State investigators will, unless and until the budget deadlock breaks, be getting paid in CA IOUs.
Watch KMEC Radio Interviews Alberto Torrico on the Terminator and the California Budget in News  |  View More Free Videos Online at Veoh.com