A useful peek behind the curtain is on the Stone & Youngberg web site. This audience is smart enough to figure out the meaning. In the anticipation that Young Specuvestor™ will read as well; California is hated by the lending community. Don't pay any attention to the ratings. California is paying junk rates for short terms.
From the LATimes, "Credit crunch puts California governments in a corner":
Credit crunch puts California governments in a corner
By Marc Lifsher, Los Angeles Times Staff Writer
October 2, 2008
With credit markets all but paralyzed and state and local governments unable to borrow money, California officials joined calls Thursday for quick approval of a financial bailout plan working its way through Congress.
The warnings were stark, including suggestions that operating funds to pay state workers, teachers or even healthcare workers could dry up in the weeks ahead.
California is swiftly running out of time to float $7 billion worth of short-term debt needed to pay workers and bills as early as next month, state Treasurer Bill Lockyer warned in his own letter.
"This isn't just a gridlock in Washington problem or a Wall Street financial problem, there are real-life impacts on local school districts, on providing healthcare for the aged and on and on," he said.
The threat of a prolonged cash crunch has leaders of the main state workers union alarmed, said Jim Zamora, a spokesman for the Service Employees International Union Local 1000, which represents 95,000 people....
In the meantime, local governments, school districts and public agencies are shying away from selling bonds because of a lack of buyers or demands that they pay extremely high interest rates.
"All we know is that we can't do it today, we couldn't do it yesterday, and we couldn't do it for the last week and a half," he said.
According to a trade publication, the Bond Buyer, at least five public agencies in California are having trouble finding buyers for their municipal debt, known as munis.
Read the article for some juicy quotes. Storm's a' comin'.