Use access key #2 to skip to page content.

nottheSEC (74.73)

BAA1 BAA1 like sheep. Don't be Moody Moody's! California will be ok

Recs

3

July 16, 2009 – Comments (5) | RELATED TICKERS: CALM , COOL , CASH

 Moody's downgrade of California debt will cost Californians money and will trickle down to us. IMHO Irresponsible at best. I know IOU cause the blues but don't treat Cali like Sanford & Sons junkyard or two notches above.Full story from the fine folks at the LA times

 http://www.latimes.com/business/la-fi-cal-moody15-2009jul15,0,4672572.story

 

5 Comments – Post Your Own

#1) On July 16, 2009 at 11:36 AM, chk999 (99.99) wrote:

How is this downgrade not accurate? California can't pay its bills and has huge legally mandated liabilities.  

Report this comment
#2) On July 16, 2009 at 12:10 PM, nottheSEC (74.73) wrote:

 A downgrade? Yes,ok but two levels above junk? Come on! I could understand a city downgrade. In that case you have to surmise if the county or state will care or just revoke the charter and just absorb them.Heck NYC was told to go to heck by Gerald Ford.

 A state is a different case and will not be allowed to go belly up even if we the nation have to again open our hearts and wallets.  my nickle..J

Report this comment
#3) On July 16, 2009 at 12:23 PM, davejh23 (< 20) wrote:

"A downgrade? Yes,ok but two levels above junk?"

Fitch was the first to downgrade, and they noted that further downgrades are likely in the near term.  So, it's likely that this is soon to be one level above junk, or junk.  Once CA agrees on a budget, how are they going to raise money at a reasonable rate?   Obama refused federal aid, but I wouldn't bet against it.

Report this comment
#4) On July 16, 2009 at 1:09 PM, nottheSEC (74.73) wrote:

 davejh23 Correct on Obama.Obama had to initially say no to by time and hope the problem is self-correcting.

Also why is government desk so rough? Your money is much much more guaranteed the the best corporate bonds. An excerpt from a MF article on credit cards looks like Moody's uses similar language on credit cards.

Moody's (NYSE: MCO) put it in April: "We would expect these seasonal factors to help limit increases in the delinquency rate in the immediate months ahead, but the overwhelming influence of the negative economic environment should continue driving delinquencies to record-high levels by mid-year."  

Report this comment
#5) On July 16, 2009 at 1:10 PM, nottheSEC (74.73) wrote:

oops should read Obama had to initially say no to buy time

Report this comment

Featured Broker Partners