[2001convSVT]

The critical point in the Detroit bankruptcy is how the Bond Holders are treated. Unless the bonded investments are a guarantee of repayment, Bonds of all municipalities(and state, and federal) are in jeopardy. Easy money to local government will evaporate, and we will see a large increase in the interest rates of those willing to buy bonds, to cover the risk of default. How the courts treat Bond holders will be critical in whether Detroit is the first of many to default or only a local tragedy.

[TArcher]

The critical point in the Detroit bankruptcy is how the Bond Holders are treated. Unless the bonded investments are a guarantee of repayment, Bonds of all municipalities(and state, and federal) are in jeopardy

 

Observe this never occupied commercial property.    Completed in 2007, last time I drove past it was still McEmpty.

 

 

Ever wonder who the suckers are whose Bonds and Retirement Funds and "Institutional Investments" are on the hook for paying the taxes on such securitized "investments"?