[credit provider=”Google Maps”] A nearly-bankrupt town on the outskirts of Osaka has proposed renting out the name of the community to a company or organisation.The unorthodox effort to raise cash for the city that is presently known as Izumi-Sano has yet to be approved by the local government but it […]
[credit provider=”60 Minutes”] Analyst Meredith Whitney has been repeatedly lambasted for her prediction on “60 Minutes” in December 2010 that “you could see 50 to a hundred sizable defaults” in municipal bond markets.In truth, there have been relatively few important municipal defaults—just an average of 5.5 per year in 2010 […]
[credit provider=”flickr” url=”http://www.flickr.com/photos/avlxyz/268478728/sizes/o/”] Moody’s affirmed its negative credit outlook for state and municipal credits Monday, citing revenue losses as Washington looks to reduce the federal deficit.”The determination of both political parties to reduce project federal budget deficits is certain to result in reduced funding for federal programs run by the […]
Policy Madness (inconsistency) in Muniland. Some bullets.
[credit provider=”fables98 via Flikr”] Jefferson County commissioners postponed a bankruptcy decision — again — today in order to take a larger role in negotiations with the county’s sewer creditors.Local officials met all day today to consider the creditors latest proposal to settle Jefferson County’s $3.14 billion sewer debt. Commissioners ultimately […]
[credit provider=”HidingInABunker via Flickr” url=”http://www.flickr.com/photos/hidinginabunker/312047264/”] The potential for mounting debt and falling tax receipts to lead to huge defaults by state, regional, and local governments has precipitated many conference calls and webinars focusing on “setting the record straight” or “busting the myths” for municipal bonds.In each of these conversations I’ve […]
The Muni war of words continues. Meredith Whitney dug in her heels in a Bloomberg interview with Tom Keene and Ken Prewitt. Ms. Whitney has forecast $100 billion of defaults in Muniland for 2011. We have argued the other side and written on this subject many times.
The essential muni-story of late seems to be two-fold: First of all, munis haven’t yet had a meltdown or seen defaults en masse. We’re almost 5 months through the year. Second of all, they’re behaving like other forms of credit (including Treasuries), and so they’ve been rallying as “risk” has […]
It had been a while since we last looked in on MUB, the big muni ETF, and whoa, were we shocked.
Dexia, the French and Belgian lender, ranks number one among foreign firms that borrowed from the Federal Reserve’s discount window during the financial crisis.
[credit provider=”Stanford Graduate School of Business”] In Washington, at an event at the U.S Chamber of Commerce, Jamie Dimon apologized for being the bearer of bad news.”I wouldn’t panic about what I’m about to say,” the JP Morgan head declared, before adding:
In a recent interview with Bloomberg (video below) bow-tie wearing linguistics lover and bond market expert Jim Grant made it quite clear he’s not a buyer of municipal bonds. Instead, he likes certain REITs specializing in the purchase of mortgage backed securities, some of which are pretty good businesses he […]
He doesn’t sound like he’s quite on board with the big doom predictions, but Jim Chanos is clearly more in the Meredith Whitney camp than many of the other investors who have chimed in on the muni question.
The muni market needed re-pricing, but now it has gotten way out of control, according to PIMCO’s Christian Stracke and Joseph Narens.
What’s going on in Newark right now is deeply depressing: Forced to cut the police budget due to the same tax constraints affecting lots of American cities, Newark is seem crime accelerate.
In response to European Sovereign Debt Crisis in Pictures; PIIGS Spreads to Germany at or Near Record Levels I received this chart from Chris Puplava at Financial Sense.
Cuts have consequences.