Clock Is Ticking For IOU Entrepreneurs

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For those who are currently engaged in the Craigslist California IOU free-for-all, your window of opportunity may already be running out. Lacking either the foresight or care to think one step ahead, regulators are now mulling over whether or not the IOUs qualify as muni securities- a decision which could force the new toxic asset traders to either close down or register with the SEC. Assuming the wheeling and dealing in IOUs is left to the major players, and other financially strapped states follow CA's lead and issue their own paper promises, it's only a matter of time before the first TALF eligible, AAA-rated IOU tranches are ready for retail investors.

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