How big of a risk is CA?

[william the wie]

At the rate Brown and the Ds are looting funded public safety trust funds as with the dam and the fires at some point the creditors will refuse to rollover their debt and chapter three will be forced on the state. CA has had numerous IOU defaults in the past and it is only a matter of time until it goes into receivership. The questions are how soon and how big the knock on effects?

 

[DarkFury]

All depends on if state officials expect feds aka tax payers to take it on the chin. Under current leadership the feds will never sign on to that debt. I don't know what their current bond rating is but would be surprised at anything better than C-

 

[miketx]

Perhaps they can manage until when and if a dim is president then they can rape the whole country to pay for the failures in cali.

 

[DarkFury]

Perhaps they can manage until when and if a dim is president then they can rape the whole country to pay for the failures in cali.

That's what they are hoping for! Had it not been for the current stock market Illinois would be bankrupt now.

 

[william the wie]

This kind of black Swan event is why I only write puts on underlying issues where the stock is selling for less than tangible assets, the PE would have to increase to equal earnings growth, at least three puts for every call for the expiration date & strike price, even more for all outstanding the options of the underlying and last but not least 50+% annualized cash on cash returns. I hate losing money. If Cali tanks I may be writing some calls for a while.