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Showing posts with the label state and municipal insolvency

Shorting Municipal bonds? Read Carefully.

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How We Know the Crisis Has Arrived by End of America video by Porter Stansberry  For us, the moment arrived five years ago. We noticed the dollar collapsing against both gold and the currencies of our trading partners. We could see the problems on the balance sheets of car makers, investment banks, and Freddie and Fannie. We watched, aware of the risks, when investors bid up real estate prices, oil prices, gold prices... almost anything to get out of the dollar.... We would urge you to share these facts (and our " End of America " video presentation) with anyone you care about. Here are the top seven factors we believe MUST lead to the end of the global U.S. dollar standard – what we call The End of America Seven Ways to Know: 1.The price of gold has gone up for 10 years in a row. 2.Our government's deficits are out of control 3.The government cannot increase tax revenues enough to cover our spending or repay our debts – ever. 4.Special-interest groups – partic...

Muni Bond Market Imploding: How to Play It?

Muni Bond Market Imploding: How to Play It? -- Seeking Alpha : "While it was readily apparent years ago, and we were reminded again during the 2008-2009 financial crash, markets had temporarily forgotten that municipalities across the nation are virtually insolvent and should already have declared bankruptcy. If they have not yet “restructured” their debt, they should and they will. After decades of politicians writing checks the future generation couldn’t pay by way of lavish public spending sprees, unsustainable defined benefit programs for public workers and lousy investment schemes (Wall Street Collects $4 Billion From Taxpayers as Swaps Backfire), current investors are rightly questioning the ability to meet these debt obligations in the future. Who Will Blink First? This has traditionally been a calculus..."