It was bound to happen. It is probably unavoidable for anyone to escape the cloud of California I.O.U.'s. Today one of my investment partners informed me that we received an I.O.U. from the State for space they lease in an office building where the State is one of the major tenants.I'm sure our lender will be more than happy to take the I.O.U. instead of our regular mortgage payment -- for now -- maybe.
In a story posted last week about the coming I.O.U.'s I suggested that our legislature not get paid for twice the amount of time that it takes to resolve the budget impasse. My partner Keith, remembered that idea when we spoke today encouraging me, only half joking, to go ahead and start the petition to get this formally on the books. His off-the-cuff estimate of how many voters would sign such a petition was 100%.
That's silly, we know that the success of such a petition drive would be something less than 100% because a few dozen people in Sacramento might be in opposition.
In Spain they are having the annual Running of the Bulls, and in Sacramento, California we are having a similar annual event, by coincidence it is also called the running of the bull! Spain's version is probably safer, or at least fewer people will be hurt.
I wonder if the state is hoarding dollars by now? Given the awful state of affairs could it get so bad that when you pay for a service in person they give you an I.O.U. in place of the change you're due?
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.
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Reader Comments (Page 1 of 1)
7-11-2009 @ 3:08AM
al coholic said...
Maybe the taxpayers living in California ahould send IOU's instead of checks for tax payments.
7-10-2009 @ 7:14PM
chex781391 said...
This is just the beginning of the economic collapse.
7-10-2009 @ 10:08PM
Kent said...
Time for Gene Autry's famous song in 1947, " Shame, Shame on You".
7-10-2009 @ 11:07PM
Wendell said...
So, with California having burned their own house to the ground by practicing unbridled liberalism for thirty years, why are we allowing them to set our auto standards, our housing standards or any other standards? Their health care system is broke, and we want to emulate that too? Get ready America, Obama wants to californicate your future.
7-11-2009 @ 9:57AM
PETER said...
Sad but true because californa was willing to pay illegals to be thier with your tax dollar for the last twenty five years at thirty billion dollars a year has finally caught up with the hard working honest americans and putting you into a finacial tail spin,in which only the politicians are responsable for thier bad policys. All I know is back in 2007 I lost my job and I tried to get heap (heating oil) because things were about to get tough for the winter ,I was denied with two kids ,mean while I found a artical were the I R S had given illegal immigrants one thousand dollar tax credits for thier children without having social security numbers,I have lost all respect for this sad country
7-11-2009 @ 10:07AM
PETER said...
If you want to put a stop to this bad behaviour are politcians are praticing ,don,t pay your taxes until they resolve the illegal immigration problem give them I O U,S ,everyone in californa has to do this together to be affective,I bet they will come up with better solutions because it,s really all about the money right now. REMEBER GIVE THEM I O U,S UNTIL THEY RESOLE THE IMMIGRATION PROBLEM THEY DO TO YOU WELL TWO SHEA!
7-11-2009 @ 10:53AM
thedude said...
@Peter - you're idea is revolutionary and I like it although your education seems to be sorely lacking, maybe you went to school in Cali. it is "touche" not "Two Shea"
In other news New York has approved a new state motto "Hey, at least we're not California"
Sheldon - get that petition signed and then start a nationwide movement incorporating Peters idea of paying taxes with IOU's
While you're at it sponsor a movement preventing anyone affiliated with either the Republican or Democrat parties from ever holding an elected position ever again. Both parties need to be dissolved and the country needs to start over.