For all those investors who are taking their money out of the market perhaps you might consider acquiring some of the state’s “registered warrants.” That would be a very patriotic act as we approach the 4th of July. In fact having a 2009 California “IOU” might become a collectors item that you can pass down to your grandkids.
As of now, the only bank that has agreed to accepting the “IOU’s” is B of A. They have agreed to honor the California “registered warrants” thru July 10th. Although I do not know the current interest rate, in 1992 the rate was set at 5% which was the maximum permitted by law.
Are you a gambler? As we are lucky to get two to three percent in local CD’s, perhaps we should contact the “big five” and offer to bail them out.
The interest rat is 3.75%
http://www.reuters.com/article/bondsNews/idUSN0233756820090702, with an Oct 2 maturity.
Since the interest on these warrants is tax free,
http://www.sco.ca.gov/5935.html
The interest rate is reasonable. Similar california municipal bonds are currently yielded 2.5 – 3.0 %, but have less risk.
tylerh
Just got the word:
Cities “can buy the registered warrants at a discount or even face value and earn the 3.75% PMIB rate.”
If anybody needs to sell their Registered Warrants our company is exchanging them for immediate cash.
Please Call, 562-290-9262
Caro. If you wish to promote your firm you need to speak to the Juice editor. As we both know there is no free lunch. That also applies to using our blog for gain.
Depending on the (monetary) size of the warrant and your need for cash, keeping it might make for a nice framed picture in your home or office as a reminder of our elected officials failure to balance our state budget.