California to Borrow $10 Billion from Wall St to Make it Through 2012

July 31, 2012 By 10 Comments

Bloomberg reports California will borrow $10 billion from Wall Street Aug 13th in order for the state to make it through the rest of 2012. JP Morgan and Wells Fargo will reportedly be joint senior managers of the note sale.
The TBTF banksters continue to steal taxpayers funds at the expense of broke nations and states.
There are 46 other states in the same financial shape as California.
The US is Greece x 100.

California will borrow an estimated $10 billion from Wall Street the week of Aug. 13, money the most indebted U.S. state will use to pay its bills for the rest of the year, Treasurer Bill Lockyer said.

Lockyer’s office will first offer the revenue anticipation notes to individual investors for two days beginning Aug. 14, said his spokesman Tom Dresslar. The state will complete the sale Aug. 16 when institutions such as money-market funds can order.

State and local governments typically sell short-term notes to bolster cash flow until tax receipts increase later in the year. A $10 billion sale would be California’s largest since 2010. In September, the biggest state by population borrowed $5.4 billion and had to seek another $1 billion in February this year after tax collections fell short and spending exceeded expectations.

JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC) will be joint senior managers and Los Angeles-based bond firm De La Rosa & Co. will co-manage the sale, Lockyer has said.
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Comments

  1. Avatar of Silvergood1 Silvergood1 says:
    July 31, 2012 at 12:45 PM

    More states to come….California is the first…We are running out of time.

    We are headed for a complete and total economic collapse.

    Keep stacking, as much as you can afford.  Every financial entity is either corrupt or broke.  The only thing left standing will be Silver & Gold, and physical survival items.

    Protect your house with gaurd dogs, alarms, and security cameras. 

    No one knows the “end” date but we know it is rapidly approaching. 

  2. Avatar of Not Sure Not Sure says:
    July 31, 2012 at 12:48 PM

    So, once again, we continue the insanity. CA will borrow money from the banking cabal to pay for things it can’t afford. The financial black hole is ever widening.

    The collective stupidity is breathtaking.
  3. Avatar of AGXIIK AGXIIK says:
    July 31, 2012 at 1:23 PM

    Sub Prime Cities, Sub Prime Counties, Sub Prime States, Sub Prime Countries.  The entire planet is Sub Prime with FIAT currency backed by absolutely zip.    California will borrow from stupid people from criminal banks—JPM being the lead bank here.  I wonder home much JPM will make from this.  Their book of business is in the tank.  Will California even see these funds without brain damage. Not that you find a lot of government officials with their brains intact.  BK the whole lot of these idiots.

  4. Avatar of AGXIIK AGXIIK says:
    July 31, 2012 at 1:24 PM
  5. Avatar of CactusAttackedUs CactusAttackedUs says:
    July 31, 2012 at 1:42 PM

    Maybe Cali should lay off some of those narcs whose time is spent raiding raw milk producers and legally operating MJ dispensaries.  It’s ironic that the state that embodied the free spirit of the West is now leading the way towards banker-run socialism / police-state playpark.  Oh yum.

  6. Avatar of Conax Conax says:
    July 31, 2012 at 2:25 PM

    Sheesh- they can’t pay the bills this year, so they borrow the funds. Next year’s bills will include payments on the new loan, as well as the bills they can’t pay now.
    Unless there is some new tax windfalls coming their way to repay this loan, they are dumb as a sack of hammers.

    There were stories a while back about GS and Morgan running towns down south into bankruptcy with the same sort of helpful financing, were there not?

  7. Avatar of Argyrion Argyrion says:
    July 31, 2012 at 3:20 PM

    California has tons of money in their investments assets.  Read about the CAFR report and it tell you all of their many investments.  They just don’t report this to the public.  All states have invested monies that is a separate accounting sheet.

  8. Avatar of AGXIIK AGXIIK says:
    July 31, 2012 at 4:23 PM

    What if the $1 trillion dollars in student loans goes into default, like they are now with about 15% delinquency, do you suppose the students could borrow $200 billion from JPM to tide them over until they get good paying jobs.  Uh Huh  That’s going to work out really well. 

     Since JPM is the student loan administrator I am sure they would be glad to loan dead beat broke-ass students more money.  Since these loans are no dischargeable in bankruptcy and mommie and daddy are cosigning for their offsprings, there will be an entire generation in total penury.   JPM  can sell these overeducated straphangers and their parents into white slavery. 

     I hear China has a thriving black market for white slaves to service the political and economic Elite. North Korea is a little short on young white men and women to handle their leaders and work the fields.   A little off topic but considering that JPM and its ilk have sold cities, counties and entire states into debt slavery while screwing the entire world into the ground with LIBOR rate rigging anything is possible. 

    This is just the next most logical step.    I’m sort of kidding—sort of

  9. Avatar of Ed_B Ed_B says:
    August 1, 2012 at 12:47 AM

    “California will borrow an estimated $10 billion from Wall Street the week of Aug. 13, money the most indebted U.S. state will use to pay its bills for the rest of the year, Treasurer Bill Lockyer said.”

    Right… and they plan to repay this, how?  Only a fool would loan an incompetent deadbeat state like California a dime, let alone billions of dollars.  But wait! It’s not as if it was REAL money, is it?  The Fed will surely zap up enough out of thin air to cover ANY losses by the TBTF / TBTE banks.  Yes, the slow motion train-wreck so often discussed here and elsewhere on the net is in progress as we speak.  The cars are tipping off the tracks and a BIG one is well on its way to hurtling into the abyss.
  10. Avatar of AGXIIK AGXIIK says:
    August 1, 2012 at 2:14 PM

    California promises to pay this $10 billion with RANs.  Revenue Anticipation Notes.   RAN is the state government equivalent of Wimpey telling Popeye “I’ll be glad to pay you Tuesday for a hamburger today.

    I’m guessing that Popeye (JPM) has other things in mind when the tab comes due  Got spinach?  Jerry Brown ain’t no Bluto.  The collateral must involved some of those CAFR assets.

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