by Calculated Risk on 8/13/2009 04:28:00 PM

Update: Actual statement from Chiang: " ... to stop issuing IOUs on September 4, almost one month earlier than expected. ... the Controller will ask the board to approve a redemption date of September 4, which is almost one month earlier than the October 2 maturity date printed on the IOUs."

From Tom Petruno at the LA Times: California plans to pay off IOUs beginning Sept. 4

California expects to begin redeeming outstanding IOUs on Sept. 4, a month earlier than expected, thanks to cash savings from budget cuts, state Controller John Chiang announced today.

He said the state also will need $10.5 billion in short-term loans from investors to get through the fiscal year ending next June 30.
...
The borrowing plan and the savings from the slashed state budget "should provide sufficient cash to meet all of California’s payment obligations through the fiscal year," Chiang said in a statement.

And by popular request ...

Click on graph for larger image in new window.

Instead of comparing the markets from the peak (See: the Four Bad Bears), Doug Short matched up the market bottoms for four crashes (with an interim bottom for the Great Depression).

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.