In the News: Two Faces of IOUs
July 16th, 2009
Copyright © 2009 Integrated Profitability TM
Regarding California’s IOUs, there are two more articles in the Contra Costa Times of interest, with the second one being particularly pertinent to the current “Small Business Finance & Profitability” (SBF&P) series on cash flow.
The first article, “Options dwindle for those holding California IOUs” was on page AA1 on Tuesday; July 14, 2009. Taking a more professorial approach, the spokesman for the California treasurer’s office sheds slightly more useful light on the sad financial plight of the State of California:
““The decision by most major banks to not accept IOUs makes them less liquid, makes it more difficult to turn them into cash,” said Tom Dresslar, spokesman for the state treasurer’s office.”
Both phrases say the same thing and he still manages to make it sound like the banks are somehow causing the problem. It would be nice to hear him say that the State of California….well, let’s be honest. It’s not really the State of California that’s the problem: it’s the elected officials who have the job to balance the state’s budget and to manage the state’s financial condition. They aren’t doing either.
In the News: Blame Games
July 13th, 2009
Copyright © 2009 Integrated Profitability TM
Given California’s financial and budget predicament, the press is full of articles about the crisis, its causes, status, what is happening and, more often, what is not happening.
One particular article has something so incredible that, in my opinion, it warranted an interruption in the current series on Cash Flow. It definitely affects cash flow. A short interruption for “Breaking News…”
The article, “Banks’ plan to refuse state IOUs takes heat,” was on page A9 of the Contra Costa Times on July 9, 2009 (Thursday). The focus of the article was on how and when certain banks were going to handle California State’s IOUs. The main thrust was that since the banks have benefited from government bailouts, if they didn’t participate in California’s IOUs then there would be a backlash.
Let’s set the playing field. Not level it—just make sure we know what game we’re playing and what the rules are.
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