[groanup]

Believe it or not I used to sell auction rate preferreds. That market has been marked by bad press from the get go. There is nothing wrong with the concept even as it was carried over to long term muni financing.

This Alabama fiasco has been well covered by Bloomberg. It is a typical small time politician cozying up to the slickies from NY who promise a pot of gold. There is absolutely no excuse for Jefferson County officials to believe anything a NY banker tells them unless they know it to be true or can independently verify it.

JPM has a sales force that goes out into flyover country and sells financial deals to CEO Joe. Nothting wrong with that until you find out they were peddling (and you were buying) stinky BS (recall Enron) and calling it attar.

Let the buyer beware. Or, if you're a fiduciary in any capacity, don't believe what you hear from a New York banker. LOL.

[Toddsterpatriot]

There is nothing wrong with the concept even as it was carried over to long term muni financing.

I agree. Some on this thread would claim that selling these securities is immoral. I'll bet they didn't use that word when these securities were saving money for the client.