The Creepy, Yet Beautiful Street Art of Dan Witz Now in L.A.
Does Traffic Get Worse After the End of Daylight Saving Time?
Eye Nosh: Is This the Best Pastrami in America?
Silver Lake Art Crawl: Also a Food Truck Crawl?
Thomas Keller Comes Home: Book Signings and a Recipe(!)
So California is issuing IOUs for the first time since 1992. They carry an interest rate of 3.75%, but that's apparently on an annual basis only earning about ten bucks for every thousand you're owed. But that's not stopping people from trying to buy them on Craigslist! Unlikely it's for profit, it's probably just for the kitsch souvenir factor.
add to stumble upon
add to reddit
tweet this
post to facebook
"Unlikely it's for profit"
You really think they're going to pay face value for them?
"Word is craiglist ads already up with folks willing to buy IOUs, but for less than face value. Some say they're souvenirs."
This makes no sense, if they're paying less than face value then that means they're doing it for profit, not for their souvenir value.
Lionel is right: this essentially how a bond market works. An interest bearing note is sold at less than face value to an investor who believes that the risk of not collecting (either the interest or principle) is offset by the lower price. Basically, if you think the state will default on its obligations, then sell for whatever you can get. But if you have confidence that the state will repay these scrip at face value as well as any interest accrued, then hold on and buy 'em up!
Or, you know, if you really, really need $150 today rather than $200 in 18 months. Which means you're broke or really bad with money. That's basically how the payday loan market works.
California Check Cashing Stores, llc. - over 100 locations are cashing these items for 2.5% - 2.75% leave with cash in hand. It doesn't sound too smart to pay 20% on craigslist. ;)