Posted on 01/14/2011 2:51:20 PM PST by FromLori
A few months ago, a state and county accountant acquaintance of mine argued that it wouldn’t happen.
It has been my observation that when you start hearing a bunch of commercials for some investment, do the opposite. The commercials must be paid for by those see the trends and realize they are way on the wrong side.
Thanks, trying to stay ahead of a fraudulent FED is a challenge.
“Thanks, trying to stay ahead of a fraudulent FED is a challenge.”
It certainly is
The Fed Is Gifting Primary Dealers With A Monthly Commission Fee Of Over $5 Billion
http://www.zerohedge.com/article/fed-gifting-primary-dealers-monthly-commission-fee-over-5-billion
As with the higher Ed, healthcare and the residential real estate market, the Feds got involved two years ago in subsidizing munis with these stimulus programs like build America bonds. So the free market was distorted and muni yields that should have been rising fell.
Now the Tea Party crew pulled the build America bonds program and the market is returning to its normal levels. This is simply a very necessary correction back to a free market system. Lets hope our GOP folks don’t buckle to pressure and reinstate the Build America bonds program again.
Yes, but how do you find the good ones? How do you know which municipalities will stay creditworthy?
Such is always the risk of investing to find the “right” bond to purchase.
First, I would avoid buying bonds from the States like California, Illinois, Michigan that have been in the news for overspending.
Second, I would look at states like Texas who have been in the news for having a balanced budget.
Third, I would also look at states like Nebraska, North Dakota, Idaho, who have NOT been in the news for having a balanced budget, but have generally had conservative political leaders for decades.
Finally, I personally avoid doing business with states who have had liberal leadership for the past 50 years. As a conservative why should I buy a bond from Rhode Island? Rhode Island may have a fantastic balance sheet, but why should I support socialism by buying their bonds?
by Cdad
on Wed, 01/12/2011 - 16:11
#871168
POMO is, and always has been, a second bank bailout. The Fed is not having an algorithm problem. The Fed does not care what happens to the dollar, and is even less concerned about the tax payer. The Fed is engaged in preserving a regime, a banker regime that has become accustomed to being well paid even when it fails...or engages in systemic fraud.
The Fed is preserving the very banker regime that lead us here to this place, a fake landscape populated by self-obsessed people living on instant gratification and consumerism, fueled by equity withdrawals and credit card debt. In effect, a population of folk that loved how that banker lifestyle looked.
The question of why the Federal government is allowing this to continue to happen is indeed a most intriguing question.
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