Sunday, February 28, 2010

Forget about Greece, worry about California

California is a greater risk than Greece, warns JP Morgan chief
Jamie Dimon, chairman of JP Morgan Chase, has warned American investors should be more worried about the risk of default of the state of California than of Greece's current debt woes.
.... Last summer, California issued $3bn of IOU's to creditors including residents owed tax refunds as a way of staving off a cash crisis. "I can't write checks without money; that's against the law. My main goal is to keep the state afloat, but I won't be able to do it without the help of new legislation," said Mr Chiang..."
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Comment: Never forget: all states are corrupt, the difference is only in degree. Never forget: "Paper money eventually returns to its intrinsic value --- ZERO." - Voltaire (1694-1778)

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