OT: California prepares for hard times

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"California has lined up a $5.4 billion loan from a group of eight banks led by Goldman Sachs as an emergency cushion if the credit markets are disrupted by a failure to raise the debt ceiling, the state=92s treasurer announced on Tuesday.

The loan carries a 0.237 percent interest rate and matures on Nov.

22."

That's cheap money at 0.237%, wonder what it will be next year?

-Bill

Reply to
Bill Bowden
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Does NOT matter; borrow every cent possible at that rate and lend it back to the Fed at 5+%; margin it to get 15-20% for one day less than the term of the note...

Reply to
Robert Baer

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