The State of California is running numerous radio spots on California radio stations, telling listeners about the benefit of owning the state's municipal bonds, and promoting their web site, BuyCaliforniaBonds.com. The state writes about the advantages of Californians buying the bonds beyond the interest received. The site says the bonds are an investment in the investors own future because the bonds "improve and build new schools, roads, housing, parks, levees and other crucial infrastructure projects."
When you listen to the ad, it makes it sound like investors can buy bonds directly from the state of California on their website. However, when you go to the site, it says that the state bonds must be purchased through a participating investment brokerage firm, of which they list dozens.
The current bond issue being sold is a $2,500,000,000 General Obligation Bond issue rated A+ by Fitch, A1 by Moody's, and A+ by Standard & Poor's. The Retail Order Period is June 18-19, 2007, the Sale Date is June 20, 2007, and the Closing Date is June 28, 2007.
Does the state of California really think that they will have that much trouble selling the bonds that they have to advertise?