Monday, October 13, 2008

California's "Craig's List" Sale

Blogger MoneyBeagle previously pointed out that California warned it may need a $7 billion loan from the federal government.

Now, lest you think California is a hobo-state, I'm proud to discover that my magnificent (but broke) home state is offering a $4 billion Revenue Anticipation Note sale between October 16 and October 23. California may not need the $7 billion loan after all! (Okay, so California is doing what we normally do when we're broke -- selling stuff on Craig's List before hitting up mom and dad for a "loan".)

You should really hear Governor Schwarzenegger's radio ad. Who would have thought that when the Terminator said, "Aahll bee baack," it was to hock muni bonds on radio?? This is so awesome!! (Or, is it the sign of the Apocalypse? You be the judge.)

I was intrigued, so I checked out Buy California Bonds' website. The details on the website are very scant so I called a bond broker. There appears to be a couple of insurmountable obstacles (for me) to purchase the California bond:

  1. I can only purchase the bond through approved brokerage firms, none with whom I currently have an account.

  2. According to a representative I spoke with at Charles Schwab (an approved brokerage firm), he wasn't sure, but believed that I could only purchase the bond in increments of $5,000. This is a bummer since the coupon rate is 5% and the maturity date is June '09. (Please note my disclaimer on the sidebar. I am not warrantying the accuracy of this info!)
As a citizen of California, I wanted to do my good deed to keep my state solvent, but I'm too cash-poor to do so. (Like state, like citizen. Ha ha.)

Oh well. Atleast I tried, right?