Reality Sets In, It Bites

How long can the Democrat legislature in California keep pretending they’re not broke and that the gold plated state union wages and pensions isn’t what bled them dry?

Major banks say they will no longer accept California IOUs

Thousands of vendors who do billions of dollars of business with the state of California are scrambling as major banks say they will no longer honor the state’s IOUs.

Despite pressure from the state treasurer, JPMorgan Chase & Co., Bank of America Corp., and Wells Fargo & Co. and other major banks planned to stick to their plans and not honor California’s warrants after Friday. State Treasurer Bill Lockyer announced Citigroup Inc. agreed to a one-week extension through July 17.

See also:
Talks intensify over closing Calif.’s $26B deficit
Bank of the West, Citibank to keep accepting California IOUs
Big banks to cut off California IOUs
The Daily Capitalist: We Buy and Sell California IOUs
What’s the bid for a California IOU? More than a Confederate dollar?
California IOUs speculation heats up as banks stop redeeming state warrants
California IOU intermediaries may need to register with SEC

$26.3 billion budget deficit, that’s a big number anywhere outside Washingtom D.C.