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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (211662)	7/22/2009 2:50:03 AM
From: RockyBalboa	Respond to of 306849

Since commercial banks accepted IOUs for cash, similar to bills of exchange (and at a certain discount) they became quasi-fungible. This and that the state accepts it in lieu of dollars for tax makes them hard to distinguish from a currency. (and as a supplier of goods and services I wouldn´t take it if there was no possibility of monetizing it whenever I need it, not when the state finally pays). The much more important issue in ca is to solve the fundamentally flawed state budget; but this is out of the focus from the time they came up with the intelligent IOU solution. For me this is the proverbial "papering over" a problem. Just wait a few months and with the gap in the budget not shrinking...IOUs, first issue come home to roost on Oct.1