Fearful that federal debt problems would leave it hanging, California has passed the hat around to eight banks and wound up with loans for $5.4 billion. The interest rate: an astoundingly low 0.237 percent.
The L.A. Times reports the state treasurer, fearing that a potential federal default might throw financial markets into turmoil, sought the short-term loan, due Nov. 22, in order to tide the cash-poor state over before it starts to receive tax revenue later in the year. The state plans to pay the loan off with notes it sells to investors.
How has the federal debt problem affected your financial plan?