>>Municipal Bond Market Crash 2011: Will Dozens Of State And Local Governments Default On Their Debts?<<
Hence my comments, when people say the economy is on a slow improvement cycle, I say that we are in the eye of the storm.
This is an excellent time to get that plywood up over your windows and get that car protected. The storm’s a’comin’ back with a vengence.
But it is a perception thing, really. It never left. The economy is like a truck driver that has been awake for days solely because of speed, and he just took the last pill.
Secession before Treasury subsidization of failed states and municipalities.
Any subsidization program will become permanent, and the highly taxed coastal states will reverse the redistribution to Red states and cause all the socioeconomic and political/financial fissures covered with Fed largesse will rupture.
Earmarks were averting disunion. Earmarks will return with a vengeance as the ponzi reaches the peaks of the death throes.
They should default. I don’t like typing that but it is the truth. Number’s games and printing money bailouts amplify the problems.
As of last Friday, Chase was still advising me to invest in bonds. Admittedly, they were advising "Get out of an 80% bond/20% stock fund into a 20/80 fund." In my view, that is the worst possible advice because it will depress bonds by selling but you stay invested (20%) in bonds as their value sinks. All the time that Chase and their ilk say "invest in bonds", state and local governments will stay 'afloat.'
Many gloom & doom writers seem to overlook the obvious, which is what we are experiencing is an organized take down.
I mean, if this really was a representative republic, where our elected 'leaders' acted in the best interests of the People, then would we really be having these conversations in the first place?
Would tens of millions of illegals be taking over the country? Would the Fed Reserve exist? Would the IRS exist? Would multi $trillions have been conjured and given to connected parties?
Seriously, does any of this makes sense? It does if you step back and review events from an appropriate perspective. The PTB know our goose is cooked, and are setting up the populace for new & improved lower living standards.
And don't you dare say poop, otherwise you might be added to certain DHS "lists".
Don’t worry. According to Paul Krugman, debt is irrelevant.
“Will Dozens Of State And Local Governments Default On Their Debts?”
Yes. Be prepared.
Well, a blog named “Economic Collapse” probably won’t be a place for cheery news!
“incoming governor Jerry Brown is scrambling to find billions more to cut from the California state budget”
The only way this will work is if he keeps paying the Union members, but they don’t provide any services.
Bernanke would likely just start buying state and local debt, just as he is doing at the federal level with US Treasuries/MBS from Fannie and Fraudie.
I believe buying state and municipal bonds would be a violation of the Federal Reserve act, but since when did the law apply to Bernanke?
How about requiring that retired public workers do some kind of “community service” to receive their pension checks? Say up to 35 years after they began work.