February 28, 2010
Jamie Dimon, the chief of JP Morgan Chase has indicated that California poses a larger risk than Greece.
Mr Dimon told investors at the Wall Street bank’s annual meeting that “there could be contagion” if a state the size of California, the biggest of the United States, had problems making debt repayments.
Dimon isn’t the first to point this out. Last month, the head of the ECB also made similar comments. Many local and state economies around this union are in a world of hurt, and California is amongst the worst.
Various officials have indicated that they wouldn’t seek to get back into the IOU game, but it’s looking pretty likely that the state may have to once again start issuing them given the size of the deficit.
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