Tuesday, December 22, 2009

California's default date

Blogging Stocks reports on a new index, the Soverign Risk Monitor, which ranks governments by their probability of default. California ranks ninth, just above Greece, and Greece is very close to default. The interpretation of the default risk is that California will default within five years. However, if the index is accurate the economy is likely to force a California default sooner if it is going to happen anyway.

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