Posted on 11/11/2010 8:45:09 PM PST by Frantzie
Not a real strong endorsement for Moonbeam and the idiot voters in CA. Will the GOP House keep allowing Obama to shovel money to CA to keep it from going under?
Pimco and other NY muni bonds are not looking too sporty either.
Please excuse the fractured English in the title. I was going write - got spanked today. The reality is CA muni bonds have started selling off since Moonbeam and the other idiots won. I should have correct the title line.
Moonbeam’s old man almost bankrupted CA and Reagan turned it into a $500 million surplus after 4 years as Gov.
Given that the money center banks were bailed out, I can’t really see California not getting bailed out. The one way to ensure Obama’s re-election would be to not bail California out. Katrina’s impact on Bush’s popularity rating will look like a nit compared to the impact of a California default on the GOP, if it stalls on a bailout. The unfortunate thing is that there are no good options.
>>Given that the money center banks were bailed out, I can’t really see California not getting bailed out. The one way to ensure Obama’s re-election would be to not bail California out.<<
Quite the opposite. If the Republican House votes to give one dime to California they’ll be replaced wholesale in 2012. The middle of the country just voted to put our fiscal affairs in order. CA, MA and NY voted to keep on with business as usual. They made their beds and now they’re going to get to lie in them. The world won’t end if people stupid enough to lend money to California don’t get it back. CA is bankrupt, or soon will be. We don’t have to follow them down the drain. That’s what the recent election established.
It is my impression that any blue or purple state Republican (with typically single digit victory margins) who does not vote for aid to California will end up losing to a Democrat. And there are lots of them. Note that there are 19 Republican Congressmen in CA. 6 in NJ. 8 in NY. 5 in Ohio. 7 in Pennsylvania. And so on.
Let the entitlement people and the government make work employees get the payments for the debt out of their rear ends.
The whole thing has been IMO like we had the mob running California.
They already drank the kool aide last Tuesday. God - who was the biggest fools back then - the sad group who followed Jones or the idiots who voted for Moonbeam 1.0?
Zero Hedge blog mentioned tonight that 30 yr Treasury auction went badly. Pretty much the only buyer was the Fed.
The band may be striking up the final number very soon on America.
http://www.zerohedge.com/article/fed%E2%80%99s-got-pomo-fever
I like your tag line though. PA did America proud especially getting rid of Kaj and some other rats.
And these financing problems are BEFORE Moonbeam gives the illegals free college.
As for PA, I can’t wait to boot Casey. He is a incompetent as any person around. If his last name was anything else, we would have never seen him higher than a code enforcement officer in a small town.
Wrong! NO! NO! NO! Libs in NY or NJ do not care about California. Even they are opposed to bailouts of other people. They only care about saving their own bacon. Therein lies the strength true conservatives have in this situation!!!!
Build America Bonds Issuances Surpass $150 Billion (US Taxpayers Bailing Out States)
But first, a quick finance 101. A bond is a debt security in which the issuer (or seller) of the bond owes the buyer a debt as well as interest on that debt. A bond, therefore, is simply a loan. The borrower is the issuer and the lender is the buyer of the debt.
State and local governments usually issue tax-exempt municipal bonds to finance their spending on public works projects. The federal tax exemption allows state and local governments to borrow cheaply because tax-exempt bond buyers do not pay taxes on the interest earned from the bonds. This makes them willing to buy the bonds from the governments at lower interest rates. The tax exemption comes at a cost to the U.S. Treasury in the form of forfeited tax revenues. That is why economists call it a tax expenditure. The Joint Committee on Taxation estimates that this federal subsidy of state and local government bond issuances will cost the federal government $147 billion over the 2008 to 2012 period.
(How much during the ensuing years?)
The data shows that Build America Bonds lower borrowing costs and reduce tax expenditures in both the tax-exempt and taxable municipal bond market. The Treasury Department estimates that state and local governments have saved more than $12 billion in present value from issuing Build America Bonds. They also note that AAA-rated Build America Bonds offer interest rates 38 basis points (0.38 percent) lower than AAA-rated tax exempt bonds. That might not seem like a lot, but when a government is borrowing billions of dollars, 38 basis points less in interest costs can mean savings of tens of millions of dollars.
(Free Money! /s)
>>It is my impression that any blue or purple state Republican (with typically single digit victory margins) who does not vote for aid to California will end up losing to a Democrat.<<
So our “impressions” obviously differ. I don’t think you have a good feel just how angry people are about all the budget-busting spending at all levels of government, however. That’s the number one reason that Republicans now control the House (at least that’s my “impression” of the matter.) Californians voted to go down with the ship and that’s exactly what they’re going to do. The best thing we could do to mitigate the damage would be to split it into two states, Conservative Cal and Liberal Cal and then let Liberal Cal sink. I’ll leave it for others to suggest the new state boundaries. Perhaps three states would be an even better move?
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