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Old 08-07-2011, 04:23 AM
 
Location: SW MO
23,593 posts, read 37,484,310 times
Reputation: 29337

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Quote:
Originally Posted by Don9 View Post
California is not on the hook to make up what Calpers can't pay by law. There is no law that states California can not default ... that ludicrous. When the state defaults because its revenue falls way to short to pay its bills ... they will have many more important priorities to worry about than paying public pensions. The pensions and benefits will fall as the economy falls.
There is no legal mechanism for state bankruptcy. As for the rest, the courts say otherwise and it is therein the issue(s) will be settled.
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Old 08-07-2011, 09:54 AM
 
5,113 posts, read 5,973,187 times
Reputation: 1748
Quote:
Originally Posted by Curmudgeon View Post
There is no legal mechanism for state bankruptcy. As for the rest, the courts say otherwise and it is therein the issue(s) will be settled.
There is a bill in congress to address state bankruptcy but you won't hear much about it due to the toxicity to the economy. They are keeping this one behind closed doors. California is insolvent and has been borrowing from the federal government at an increasing rate. This will obviously change now that Fed's have been downgraded on its debt credit rating and will now be forced to make major cuts in spending. This means much less money for the states ... and many of the states are already insolvent.
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Old 08-07-2011, 07:22 PM
 
25,619 posts, read 36,707,101 times
Reputation: 23295
Quote:
Originally Posted by yeahthatguy View Post
There will be muni bankruptcies .. California's Calpers will see record losses .. and california will see another huge budget deficit going into the next year .. The reason : It's the economy stupid ... and markets are finally pricing in that fact.

Calpers bought real big leveraged into the dip ... From the market action .. all the 2011 have been erased and 2010 gains are being lit afire by the minute for those who are 'all in' and over-leveraged. California's tax revenue, since it likes to tax anything that moves about $40k to high hell is going to see billions of dollars in reductions.

Stocks pile on losses amid economic worries - Business - Stocks & economy - msnbc.com

"Stocks pile on losses amid worries about the global economy
Dow briefly drops 350 points; markets 'fear index' highest since March"



Right on time.. We'll see how Calpers is doing by the end of the year ..
When I'm right .. I'm right.

Bulldogdad, you in on this? $$$$$$$ w00000t
Absolutely my brother from another. Glad I made that cash play back in late June. Waiting like a shark for the stragglers to bottom out before feeding. Lots of blood in the water.

Like Cedric the Entertainer likes to say "It's worth WHAT?
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Old 08-07-2011, 08:01 PM
 
2,311 posts, read 3,506,319 times
Reputation: 1223
Quote:
Originally Posted by Bulldogdad View Post
Absolutely my brother from another. Glad I made that cash play back in late June. Waiting like a shark for the stragglers to bottom out before feeding. Lots of blood in the water.

Like Cedric the Entertainer likes to say "It's worth WHAT?
Oh man . Glad I have a brother in arms.. The waters sure are getting choppy Lots of chum to attract the sharks .. I am letting my longs take a beating while offset trading w/ leveraged day trades of SPXU .. In all though, I am slowly adding to several positions each step of the way down .. Buying the most battered of stocks and seeking to finally get back in on some high dividend yielding stocks that get more impressive as we head lower...

Sold for nice gains going into july 22nd ... have been slowly re-adding/strategically shorting ...
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Old 08-07-2011, 08:02 PM
 
2,311 posts, read 3,506,319 times
Reputation: 1223
And here comes the muni fallout :
Muni Market Prepares For "Hundreds And Hundreds" Of Downgrades Tomorrow | ZeroHedge

Source : Zerohedge.com
California : one of 14 states that allow muni bankruptcies .. Good times for all .. But pigs will be slaughtered.
As I stated originally, the rhode island fallout has implications for California ...
Enjoy the show everyone. I sold my muni bond exposure back in 10' as it was only a matter of time before this started happening
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Old 08-07-2011, 11:00 PM
 
2,311 posts, read 3,506,319 times
Reputation: 1223
Brown's shaky bet on $4 billion - San Jose Mercury News
Lets start the shortfall at $4billion and counting...

"But investors have lost $1 trillion in the market plunge since late July, so the well
may now be dry, economists say."

Get a nice lesson on what happens when you keep depending on the rich for tax revenue..

It appears the state's economy "will be slower in the months ahead than it appeared a couple of months ago," said Stephen Levy, director and senior economist of the Center for Continuing Study of the California Economy in Palo Alto. So the state is "unlikely to get an extra $4 billion in revenues from general growth."
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Old 08-08-2011, 12:54 PM
 
25,619 posts, read 36,707,101 times
Reputation: 23295
I hear a Bear coming!
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Old 08-08-2011, 01:46 PM
 
2,311 posts, read 3,506,319 times
Reputation: 1223
Quote:
Originally Posted by Bulldogdad View Post
I hear a Bear coming!
ROOAARRR .. scooping some nice dividend stocks @ 6-8% dividend yield.. buys of a lifetime
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