California Watch: Will California Default on Bond Debt in 2010?
By Daniel at 30 December, 2009, 1:16 pm
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“Lawmakers are looking for anything they can do as the recession has put a huge hole in their budget,” Jack Kyser, chief economist with the Los Angeles County Economic Development Corp., told Market News International. “The economic recovery in California will be a slow next year before getting better in 2011 Kyser cautioned that the threat of the state defaulting on its billions of dollars in bond debut has become a distinct possibility. ” “He also warned that if the state defaults it would “freeze the market immediately for any government debt coming out of California.” Bill Watkins, executive director the Center for Economic Research and Forecasting at California Lutheran University in Thousand Oaks, Calif., agreed and urged state officials to begin discussions with the Obama administration and the Federal Reserve in case California defaults on its debt. “In my opinion, California is now more likely to default than it is to not default,” Watkins wrote in an economic forecast released Dec. 16. ”
http://imarketnews.com/node/6483
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