California bonds keep dropping

From Bloomberg:

"The escalating financial crisis has depressed the state’s bond prices, driving up the yields. A California bond maturing in 2033, which pays 5 percent interest, dropped to 76 cents on the dollar today to yield 7.08 percent. That’s down from as much as 80 cents yesterday, when it yielded 6.66 percent."

Interest will go a lot higher than that soon. But given the frightful condition of the state here at the beginning of the Great Depression of the 21st Century, why would anybody buy a bond that doesn't mature until 2033? There may not be a California (let alone an America) 25 years down the road. And what nitwit would accept a mere 7.08% a quarter of a century from now given the real inflation rate (or even the phony-baloney understated CPI the government produces)? Who's buying these bonds? The only reason to buy a government bond that I can think of is ostensible security. Who thinks California is secure these days?

Read it here