Now what, California? Some of the biggest banks don’t want your IOUs. And there’s this gem from State Controller John Chiang:
The development is the latest twist in California’s struggle to deal with the effects of the recession. After state leaders failed to agree on budget solutions last week, California began issuing IOUs — or “individual registered warrants” — to hundreds of thousands of creditors. State Controller John Chiang said that without IOUs, California would run out of cash by July’s end.
Does Mr. Chiang have a serious case of denial? The fact that you are issuing IOUs means you’ve got no cash, not “run out of cash”!
