Investors are increasingly bearish on California, the Golden state, which is facing a $24 billion budget deficit.As Zero Hedge discussed a week ago, Cali CDS are cheap, maybe too cheap. There is much more widening to come as the CA crisis is doomed to escalate and the Governator will be stuck offering the only possible advice he has left for his fellow Californians (of course, absent the recently quitting smoking, but not quite, President footing another $30 billion taxpayer funded bailout).
The CHART OF THE DAY shows the price on 1-year California credit-default swaps widened to 285.10 basis points from 200 basis points on May 8, according to data compiled by Bloomberg.
And as Zero Hedge's cost structured is hindered by having exactly 0% of the Bloomberg journalist pool overhead, we can afford to provide the Cali CDS chart for free below.
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