Welcome new reader!

Financial news I consider important, with my opinion, which is worth as much as you paid for it.
Please click HERE to read a synopsis of my view of the financial situation.

Tuesday, March 2, 2010

California is losing the debt game, to Kazakhstan

When a Country, state, county, town, or company issues debt, the rate the entity has to pay is an indicator of risk. For a low-risk debt note, the company pays less interest than a high risk debt note.

Pretty simple.

California is now a "higher risk" for bond purchases than Kazakhstan, Uruguay and Lebanon. The question is, how much interest can we all pay as a debtor nation before it spirals out of control?

Let's hope we never find out.

No comments:

Post a Comment