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A comment on California Won't Accept Its Own IOUs. Parent comment

Re:California Won't Accept Its Own IOUs by DannoHung on Tuesday August 11, 2009 @05:01PM (#756403)
Were bonds actually issued to the small business owners in this case? The article only mentions the nebulous "IOU's"
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Re:California Won't Accept Its Own IOUs by JimmyL on Tuesday August 11, 2009 @11:20PM (#757184)
They're IOUs because the average person reading the stories about them won't understand what it means if they said they were bonds (they'd think commercial paper, if anything).

If you read hardcore financial papers, they're effectively bonds backed by the State of California.

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Re:California Won't Accept Its Own IOUs by ckinnan on Tuesday August 11, 2009 @05:06PM (#756414)
Yeah, the SEC determined they are "securities" or bonds...they pay an interest rate.
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