California IOUs sold on Ebay, Craigslist

California started giving out registered warrants, unofficially called scrips or IOUs, last week due to its cash-strapped state, according to a Los Angeles Times story by Reynolds Center intern W.J. Hennigan.
This has caused warrant sellers and buyers to hit the Internet, making warrant deals on sites like Ebay and Craigslist. Some buyers are looking to profit from the warrants annualized interest rate, while cash-desperate sellers are hoping to squeeze any money they can from the IOUs.
California's bond debt has also plummeted, down graded from A-minus to BBB status, only a step away from receiving the "junk" rating of BB.
View the story here. To learn more about bonds, visit our recent story on Electronic Municipal Market Access here.

FBN Stock Market Editor: "We're not going to hit bottom until 2011 or 2012"

In an interview with Woman Around Town, Elizabeth MacDonald, stock market editor at the Fox Business Network, shared her views on the economy, the bailouts and a future turnaround for the markets. MacDonald said she is pessimistic, and noted that she does not anticipate a market bottom until 2011 or even 2012. She said the bailouts, which were a product of "hysterical blindness," may not work. "I have lots of concerns including the impact of government's fiscal recklessness (which I should note also occurred under President Bush) and a potential national security issue now that China holds massive amounts of U.S. debt," she added.

MacDonald has the following advice for investors:

Start socking away your money in a decent bond fund with long-term bonds, not short-term debt instruments, which tend to be more volatile, and max out your 401(k). Save, save, save because the U.S. government is deeper into the economy than ever before. And your taxes and costs are going to go up.

MacDonald has received multiple awards for her business coverage, including the Gerald Loeb Award for Distinguished Business Journalism. Prior to joining FBN, she worked for Forbes and The Wall Street Journal.

For more click here.