California IOUs for trade

Some people think they can make money from California's fiscal misery. Maybe they can. KPCC's Julie Small reports that late yesterday the state treasurer issued guidelines for secondary sales of the stuff to keep the speculation under control.

Buymyiou.com.  That's one website among many that popped up on eBay and Craigslist to cash in on any cash proceeds from California's IOUs. The state began printing the green-shaded warrants just last week to pay some of its bills - mostly to welfare recipients and taxpayers awaiting returns.  By the end of the month the state will have issued more than $3billion worth of IOUs. California plans to pay them back this October with 3.75 percent interest. 

Now, people are offering to buy the IOUs in hopes of pocketing that interest.  So much so that the State Treasurer set some ground rules: Any secondary buyer has to present a notarized bill of sale signed by the person whose name appears on the IOU.  Without that document, a California IOU will be worth less than the paper it's printed on.