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1 posted on 03/02/2011 8:05:48 PM PST by DeaconBenjamin
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To: DeaconBenjamin

I’ve traveled around, to different places, I see a lot of businesses closed, boarded up, this MUST impact the local municipal treasuries with sales down. If it happens at the State Level, it has to show up sooner or later at the City Budget level. Hang on for a tough ride. I was with a group of 90 year old men, sitting for coffee at a senior citizen’s retirement home, they compared their Great Depression with the Obama Depression, they said we haven’t seen anything yet.


2 posted on 03/02/2011 8:09:03 PM PST by rovenstinez (.)
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To: DeaconBenjamin

By the time QE VI comes around, no one will notice this stuff.


3 posted on 03/02/2011 8:09:23 PM PST by ClearCase_guy
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To: DeaconBenjamin

Jeffrey Gundlach who is now the top bond investor in the country or world is predicting defaults anywhere from $10 to 30 billion. He said that if it is modest amount ($10 to 30 billion) that it will still affect all muni bond prices sending them down.

He is planning on scooping em up and also bond funds when they lose 50+%.


4 posted on 03/02/2011 8:12:01 PM PST by Frantzie (HD TV - Total Brain-washing now in High Def. 3-D Coming soon)
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To: DeaconBenjamin

Overblown? Funny, isn’t that the same thing they said about predictions of default when the Subprime crisis was in its early stages?


6 posted on 03/02/2011 8:21:41 PM PST by rbg81
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To: DeaconBenjamin
Bond dealers still claiming munis are safe investments.

It would be laughable if it were not criminal. They ALL KNOW with certainty that munis are headed for the ash heap of history.

7 posted on 03/02/2011 8:21:59 PM PST by Mariner (USS Tarawa, VQ3, USS Benjamin Stoddert, NAVCAMS WestPac, 7th Fleet, Navcommsta Puget Sound)
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To: DeaconBenjamin
"Fabian said that $38 trillion of outflows in the municipal bond funds over the past three weeks"

A misprint, I presume.

10 posted on 03/02/2011 9:01:43 PM PST by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: DeaconBenjamin
Nouriel Roubini's Firm Says Muni Defaults Could Reach $100 Billion
11 posted on 03/02/2011 9:21:11 PM PST by FromLori (FromLori">)
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To: DeaconBenjamin

This is one fact that seems to get lost in all the discussion of what Governor Walker is doing in WI. If muni bonds default, because the state essentially is bankrupt, do these cretins in the unions not know that their entire pension and retirement benefits are at risk?

Just like the UAW drove the auto industry into oblivion by its incredible and stupid greed, public sector unions are going to do the same thing to their employer (the state/taxpayer).


12 posted on 03/02/2011 9:41:51 PM PST by fightinJAG (TAXPAYERS OF THE WORLD UNITE)
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To: DeaconBenjamin
Goode explained that defaults in Harrisburg, Pennsylvania and a default on a bond tied to the Las Vegas monorail system are "special situations" that involved private investors. He added that technical factors caused the municipal selloff and fear.

In a sense, ever default is a special situation that can be explained away. (Methinks Lucy will have a lot of "'splaining to do". The technical factor that was not mentioned is that projected local and state revenues will be insufficient to service much public debt.

13 posted on 03/02/2011 9:42:51 PM PST by mlocher (USA is a sovereign nation)
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