What in the world ........? :
IOU's from CA are now to be considered 'securities' ? Last time I looked, it was against the law to be paid in anything but monies, unless you specifically agree to be paid in another form. And I can't help but wonder how many pennies on the dollar your IOU 'security' will be worth when you attempt to convert it to the dollars originally owed you ! (As a 'security', it can potentially be 'traded' and thereby be susceptible to varying worth.) yikes
It is also my understanding that if a business accepts IOU payment(s) from the State, said business must follow the law and pay their employees in monies ie, it’s against the law for businesses to pay employees in IOU(s). If CA can do this and more states find themselves in the same financial fix, in times to come, the same thing will be coming to all of us, in one form or another ! Small businesses don't qualify for 'bailouts'. (These businesses are contracted by the State for services, so what happens if the small business breaches the contract by cause of 'unable to fulfill' ?) This action will put many out of business; ie. where are they supposed to get the monies to pay employees and restock, when they 'must' accept the IOU offered in payments or bill the State and wait GOK's how long, for payment in monies ? double yikes !
soooooooooooo laws were broken that got us into this mess and now laws are broken, in a duplicitous attempt to get us out, by changing the rules/laws as the ‘game’ progresses - what’s wrong with this picture ? Have you noticed how much of all this mess is impacting the working 'little people' ? Now I see in todays news, AIG is currently trying to get a special 'ok' to pay for past, unpaid bonuses to their execs with bailout monies. I'm getting fed up with 'news'; how about you ? And, how about prosecuting the original fraud ? Nope, I still haven't been diverted from THAT issue; I love the Constitution.
Its interesting isn't it. My parents are out in California and they can't imagine it getting much worse but you know that California is the nations trend setter right?
ReplyDeleteIn Illinois, it looks like we might be heading there soon. So far, no budget approvals. This is where California was last summer. By this time next year, Illinois may have taken the IOU route. We are already seeing budget cuts in education, laying of extra staff.
I stopped watching the news. Fed up? Absolutely.
I don't know why they are not prosecuting that original fraud or rather, why they are not even bothering to make a pretense of an investigation.