Friday, March 20, 2009

California Bond Debt

California's bond rating was downgraded today.
California now has the distinction of being the lowest rated state by all three
major ratings services.

Elsewhere in the Sac Bee, water exporters want the state to issue billions in new bonds to pay for a peripheral canal. They say they will pay for it, they just need the state to use bonds to borrow on their behalf, and they will repay the bonds. If government loans to automakers and others are a bailout, they should call these water bonds a bailout for the big water exporters too. Ultimately, it is the taxpayer who will be on the hook for a big portion of this, directly and indirectly.

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