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Harbinger Of Muni Bloodbath: Vallejo Offers Unsecured Creditors 5 - 20 Cent Recovery
But, but, munis always pay back almost 100 cents on the dollar, even in bankruptcy, right? Wrong. Bankrupt Vallejo just filed a POR to pay back unsecured creditors between 5 and 20 cents. "The city regrets that it cannot pay a higher percentage,” Vallejo officials said in the court filings. “The city lacks the revenues to do so while maintaining an adequate level of municipal services, such as the provision of fire and police protection and the repairing of the city’s streets." Just wait for the reaction when holders of unsecured debt all those other (hundreds of) insolvent cities, towns, and states realize that a 5 cent recovery is all too possible...
And now for the bad news, from Bond Buyer:
Unsecured creditors will receive 5 cents to 20 cents on the dollar for their claims under a reorganization plan Vallejo, Calif., filed Tuesday in federal court.
The plan to exit bankruptcy outlines the reorganization of debt the city owes its largest creditors, Union Bank and National Public Finance Guarantee. It also sets aside a pool of $6 million to pay unsecured creditors about 5% to 20% of their claims over two years, according to court documents filed in U.S. Bankruptcy Court for the Eastern District in Sacramento.
The formal legal plan is based on a five-year road map City Council members approved at the end of November, tackling $195 million in unfunded city pension obligations, cutting payments for retiree health care, reducing pension benefits for new employees, raising pension contributions for current workers, and creating a rainy-day fund.
Union Bank, the largest creditor, is owed $50 million after holding letters of credit on four series of defaulted COPs. The filing indicates Union Bank will get a new “lease-leaseback” obligation in exchange for canceling the COP series. It will also get $6 million of unspent proceeds from the COPs held under trust agreements.
Union Bank is slated to get 40% less than what it would have received from the original COP scheduled payments, according to the Vallejo filing.
Vallejo’s exit strategy includes restructuring the debt owed to unsecured creditors, many of which are employees and retirees, by creating a $6 million pool of cash that will be paid out over two years. They will still be able to pursue one of the city’s insurance pools to settle the liabilities, according to the documents.
Vallejo is certainly not the last to file a plan of reorg that attributes its GUCs nuisance value. We wonder when these same GUCs realize they are nothing but a nuisance: today the MUB actually closed up.
h/t Bruce Krasting
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It's all contained.
No Great Depression 2.0!
US stocks set to surge up to h7even this year!
http://truthisliberty.blogspot.com/2011/01/marc-faber-sees-qe2-causing-s...
statists: Go ahead, lend all your money to government.
investors: Never lend to government, any government.
governments: Default. Teach people what they should already know fully well... don't mess with predators.
I don't understand what everyone is bitchin' about.
You're getting real world return.
After the way Banana Ben has been printing money from QE 1 and QE 2, your getting back the actual value of original dollar you invested at that time.
Since the dollar has lost approximately 93% of its value since 1913, 7 cents for every dollar invested sounds about right to me.
...
...
The real bloodbath will get kicked off with floating rate debt, swaps and other derivatives. We saw it Harrisburg, PA and in Jefferson County, Alabama. Vallejo put its nuts in a slow vise through leverage and especially over-commitment to benefits. But derivatives are like sitting next to a bomb with many fuses while glowing cinders drop from the sky.
You're right. Derivatives make it worse, not better.
Munis are mortgage bonds in drag. Cities used real estate in essence to borrow promiscuity. Now all forces are full steam in reverse. The pols can not sell austerity fast enough. Fed can not use printing press to bail 1,000's of local polititians messes. Many of these severly handicapped states and cities are very very large. They floating rate muni bond mess is still out there on banks balance sheets too! This is going to get ugly.
Trunies?
Love that definition!
Wow, I'm REALLY late to this party. Dude, its the Bankruptcy Court who will decide how much the FDIC/UST backstopped Union Bank will receive. Kudos to Vallejo for beating Harrisburg PA for top billing, I hope they get their legal services for free.
Legal costs are up to $9M at least. Everyone suing everyone in an environment where there is not much precedent. Very ugly and wastful. Much better to negotiate rather than feed what's left of the pie to the lawyers.
Wow!! Now how is that Robot Bitch going to sell this and still cry saying gold stocks suck??
Robo is going to have to take the bra off eventually.
The new mantra... there is no such thing as secured debt. There is no such thing as security. Any rule can and will be changed to pass any losses from banks to the public, current (no services) and future (debt load).
All of this can only end in a few ways...
1. War
2. wars
3. local unrest
4. global unrest
Of course any one will lead to the other.
Sleep easy.
ORI
http://aadivaahan.wordpress.com/2010/10/18/an-opportunity-and-a-golden-w...
Certificate of Participation? In California? A fool and his money...
I just love this logic.
"Johnny Law Lives" says:
Did the collapse of Enron portend a collapse in the energy service industry? No.
Johnny, there is a huge difference between ONE energy company that overstated its earnings and used creative accounting (cough) and a municipality that cannot afford to service its existing debts because the purchasers of new debt are fare and few in between.
See the Fed has been buying Uncle Sam's debt paper with money created out of thin air for the last ..uhm .. about 2 years at least. Not sure, they could have done it before as well. Nobody knows because nobody can audit the Fed. Last 2 years though the Fed had to announce it because everybody KNEW that there are no buyers of debt paper out there.
So, the munis and states for that matter are in a pickle. They too have to issue new debt paper to keep the ponzi going. Surely, YOU understand ponzi right!? Trouble is, the buyers of muni and state debt paper are few and far in between and the Fed hasn't stepped in yet - at least not officially. But who knows? See my prior argument about >audit<.
The Fed can do whatever the hell she wants. She can print and hide and extend and pretend for as long as the rest of us (and the rest of the world especially the world) is not asking any questions or is accepting the fact that we're being hosed by the Fed.
Not sure if you understand that, Johnny.
Sorry to tell you.. Vallejo IS just another canary in the coal mine.
That coal mine my friend is actually littered with dead canaries by now and the stench of these dead birds will eventually make it impossible to hide.
Stay tuned for the next muni or state to declare their debt problem unsolvable.
Anyone read that Greece is unwinding its debt? Greek debt default is finally on the table.
It all comes back to a maxim that the banksters always seem to forget: don't lend money to those with little or no chance (skills and thus future income) to pay it back. How can these cities ever pay back their debt? Their property base is overvalued, their pension obligations extravagent. They can't pay it back, so they will default. Extend and pretend can only last so long. Even Japan's day of reckoning will come. Then ours.
Banks make loans to collect interest and fees.
When loans default, the bank goes under and FDIC steps in.
Bank management lives happily ever after.
Great business model. I'd like to be a bank please.
Immelt has perfected this with GE Capital--he'll have a 'home based bank business' web scam coming right up for ya.
- Ned
pensions are just for old people who cant stand to consider themselves on social security
deal with it!
@Goldmiddlefinger
Hey, I think when all these defaulting munis and states need to sell their gold and silver the prices of these commodities will go down, down, down!
Oh wait! None of these debt whores actually own anything of real value! Shyte. Guess it will keep going higher then.
I'd make em pay with real nickels. The 75% copper, 25% nickel variety. I am laughing at the 5 to 20%range. IOU's from the state, nickels from the city.
bonds are guaranteed certificates of confiscation
whether through debasement of the currency the bond is denominated in or through outright default, the bond will end up worth-less (or worthless) and anyone putting their money into bonds is asking to lose their wealth
and it doesn't matter if the bond is corporate, municipal or govt - it's all the same
Whitney gave the signal for this stuff to start really happening. Self fulfilling prophecy bitchez!
http://www.youtube.com/watch?v=Z1TxiVhrkZA
Collapsing services, property values AND tax hikes?
What's not to like about the American Nightmare?
The states have no other alternative other than default because there are three only three final outcomes to debt :
Repayment
Default
Part repayment part default
The problems of excessive debt and leverage cannot be solved by taking on more debt and leverage. The revenue collections are going down for the states because of the recession and the governments are not able to cut down their expenses because of the pressure from unions and vested interest. So the lenders are given haircuts.
http://www.marketoracle.co.uk/Article24581.html
So you mean it was all a dream? Not real? There are no options? /sarc
Reality check is here. People waking up. People understanding PONZINOMICS. People doubting the funny paper with the faces of former Presidents is really real. People wondering what is real? People remembering that gold and silver have been around longer than PONZINOMICS and survived previous futile attempts at PONZINOMICS.
What do you want to own if you don't own it already?
There is ONLY ONE store of wealth in a massive American debt restructuring or debt default. Not even considering global consequences.
Physical PMs.
Why anyone is still double guessing what will be is beyond my comprehension. Not worth spending time to argue this anymore.
It should be clear by now that TBTFs etal, buying muni bonds etc., don't care about 'money', or even 'losses'.
They get the 'money' for nothing from the Feral Reserve - easy come easy go.
The only purpose is to buy a claim on Municipal assets at point of default.
They know there will be haircuts, probably huge haircuts, but that doesn't matter. An 'investment' profit is not what they want. Who cares, there are no accounting rules - remember?
What the hell is 'profit', or 'loss', when there has been no real accounting and has not been for going on to two years? Yes - two years. Do you think they are going to go back to real accounting in the foreseeable future?
No that's out, this is about TOTAL SYSTEMIC CONTROL.
Or if you prefer, the term, 'FULL SPECTRUM DOMINENCE', as it is not about mere accounting, or balancing counterfeit debt money in double-entry book keeping. That was just the tool to get to where we are now. It's no longer necessary. Maintaining total systemic control is now the senior objective to mere accounting.
They must try to maintain total systemic control now, because they know this is the big global power grab, and to fail to do so, means probable impromptu execution.
They already know there won't be any opportunity to return to the former accounting rules. That phase is over, it will only return as a tool to control us.
Unfortunately most people are still assuming that there will be a return to mark to market accounting at some point, and therefore actual writedowns on real honest to goodness balance sheets.
There won't be. Forget it. Losses are out. They already know this. And that's why they are behaving in this way, buying any loss making 'asset', because the asset is in the claim on physical Municipal assets, not on mere debts and mere money.
They can get money for nothing already - they have been for decades. But now its open and blatant.
All these (to you and me) otherwise 'worthless' bonds are is the legal claim on Muni assets during the coming wave of defaults to make sure the whole country is owned by the tribal bankers. So that NOTHING escapes their FULL SPECTRUM DOMINENCE.
Oh, you thought that sort of paradigm was to protect you? Sorry, no cigar, it was designed and implemented to dominate YOU, so that you could never free yourself from the thievers and slavers, without massive destruction to the whole fabric of the society you depend on, at every level.
Happy 2011.
They are going to buy bonds no matter what the price, or the logical near total worthlessness of them an 'investment' that produces returns.
This has ZERO to do with the logic of investment to get lawful gains. Don't think about what is happening via the logic of an investor, think about it in terms of, "how do I trick the entire world into 'legally' handing everything to me on a silver platter?" Because that is exactly the logic the tribe is using against us. The MSM acts as though they are tracking investment, when it's just the process of stealing every conceivable asset when the collapse comes and its time for their total systemic control to go loud, and make war on all of us.
Get your head around it. Your logic is fundamentally flawed if you think about this in terms of an 'economy', that's to be 'repaired', to again make real and honest returns.
This is the free-ticket to stealing the productive assets and all of the future financial activity and potential returns > AFTER < the coming total systemic debt-collapse, which they knowingly and deliberately engineered, for this very purpose. They are not the slightest bit interested in now.
They only care about still being in total global systemic control in the year 2,100 AD.
The solution?
Well (besides the option scrubbing off their skin with a steel-wire brush on a grinder) you jail them and all their accomplices, then forcefully confiscate and Nationalize all of the assets, as the point of a gun, that they have stolen from your country.
But ... but ... that was my 'bonus'!
Well, now it isn't, deportee.
Use civil militias if (or rather, when) the 'police' and 'judges' won't do it. I am not expert on US Law or Constitution, but I got the impression the "right to bare arms" was specifically designed to provide the citizenry a capacity to bring to an end just this sort of vile inside-job attack on the real citizens of the nation, and their true interests?
So this is the time when they must stage and aggrandize event after emotive event, to try and drive people and the laws to attack these very provisions, and to paint it and anyone who recognizes the legitimate need to use it, as loony, "mentally unstable", and needs to be "looked into" ... for their own good ... of course.
Because the system so obviously does not need a popular revolution by real US citizens.
--
No more private central banking - ever!
No more private fractional reserve counterfeit - ever!
No more tolerance of tribal stalking and infiltration of Govt - ever!
No more changing names to hide who and what you are, to escape what you may have done, or intend to do, or to use as a ruse to further criminal acts and hide from the consequences.
Members of the Rothschild family involved in "the family business", and ALL of their partners in crime to be taken dead or alive (preferably very, very dead).
--
The current QE will not stop, as just like the past several years of POMO, it will occur out of sight anyway. QE is not supposed to save the 'economy', and that has never been its purpose. The 2008 'systemic crisis' was deliberate and initiated.
If you doubt this read:
"Wall Street's Naked Swindle" - A scheme to flood the market with counterfeit stocks helped kill Bear Stearns and Lehman Brothers - and the feds have yet to bust the culprits - by MATT TAIBBI Oct 14, 2009 9:30 AM Rollingstone.com
The whole purpose was to provide the means to steal - oops, sorry - to buy all the assets and buy all the mines, commodities, food, transport, energy, and means of production, and of course, the 'Govt'. A Govt which is now little more than the willful puppet of Jerusalem and blatant betrayer of the REAL US citizenry.
Also, QE has zero to do with rectifying something 'wrong' in the 'economy'.
The economy has nothing 'wrong' with it.
It performed beautifully, and continues to do so, and is functioning exactly as it was supposed to, and expected to. The difference is you thought the 'economy' was about the logic of investment, and real returns, and the greater good, and that it should approximate an Austrian idealism, with some socialist features, and real accounting.
Sorry, it was always about the logic of global theft, and summary takeover of every means of total systemic control, to the extent that non-compliance would not be a viable, and eventually a non-survivable option for the REAL Citizenry.
The sad truth is the 'economy' is perfectly healthy, right now, and performing beautify toward their purposes. Get your head around this, your life, and all others now depends on our facing that ugly reality.
Stop waiting for or hoping to elect that idealic individual or combination of representatives who will "do the right thing by the people" and pull it out of the fire just in time.
You're basically good people, I'm sorry you were duped into thinking this was about economics, but a political and economic hero is not coming. You were tricked by a false hope about a corrupt system that has long been set against that ever being permitted to take place.
Simply because if that took place it would be a complete disaster, and they will do all they can to make sure it doesn't happen via normal due-process.
Now you understand the role of the erudite and articulate Mr. Obama, to eliminate viable due process, to make sure you don't get the, "Change We Need". The terrible truth is the 'economy' is already "doing the right thing", you just though it was supposed to do something else.
A perfected globalized usury system was never intended to produce sweet economic outcomes, that you and almost everyone else want. Or were told it was designed to produce. It wasn't, and that should be very obvious by now, if pointed out, to anyone paying attention.
Either face this and wake up now, or just recite;
"There is no such thing as a lamb chop, it was only a rumor ... bah!"
"There is no such thing as a lamb chop, it was only a rumor ... bah!"
"There is no such thing as a lamb chop, it was only a rumor ... bah!"
Denial of what this ultimate usury and total-systemic-control agenda is up to will not make it go away. The muni collapse is entirely engineered, from the bubble, to now, and like the 2008 Bear Sterns 'inside-job', this one also will be 'popped' by insiders, when all the elements are in place.
You can see what it is doing so stop accepting any more lies about what this really is. You are under attack by a fifth column, that almost has you beaten.
There is no intent of creating a 'recovery', that is a myth, they know there will be no recovery, like green shoots it is a ruse to try and stop you rioting before they are ready. This is a global synchronous shakedown and takeover.
The 'economy has only that function.
It is not so you and yours have a happy later life, once you retire from being a wage slave. They will inflate that away long before you get there and steal the pension funds anyway. The 'economy' may have had an honest intent, once, but that was a very, very long time ago.
If you benefited from "the economy", that was a fortuitous coincidence, rather than a primary aim of its activity. And any relative benefits you once received were intended to be eliminated, over time, as you now see.
That also should be very obvious by now.
Don't get mad about it, get even, go after THEM, the ones who did it.
You know who the creators of this 'economy' are, have a look are Business Review Weekly, and The Economist, and TIME Magazine, if you need a refresher. These guys did not call themselves the "Masters of the Universe" prior to Lehman's collapse for nothing.
You just didn't realize they were actually serious about the 'Master' bit. We thought it was just a turn of phrase, we didn't realize they really believed they were our literal Masters. They have no intention of being mere 'employers', with employees.
Masters and slaves is what your perfect usurer's "economy" is all about. They intend to make you an unquestioning slave but ALSO make you believe and think you are an 'employee', with a 'boss'. Look around you, none of this is even new. They have been doing this for years, already, and the "rewards" of this servant ship is complete materialistic and egotistical bullshit.
But now they intend to take it to the next level of total systemic control, now of the individual, and their family, through having enough information about you, that they can manipulate every aspect of your life to make you 'decide' to do whatever they require of you.
All in your best interests and with love and warm and emotive feelings of togetherness, teamwork, and partnership, for a better future for all, of course. Well unless and until you give any sort of 'static', or dare offer a contrary opinion or view, more than once, because then you'll be destroyed and forgotten as a 'deviate' minded person, a troubled or mentally unstable persona, and your reputation and future prospects thus smeared and your resume undercut.
None of this is new, it will just go to the next level of total systemic control.
And all the other smears they now seek to apply to any non-conformist or non-participator in their outrageous criminal facade of a suicidal destructive 'economy', and the rampant criminal enterprise of National politics.
And its sublime national lie-support apparatus - the main-stream media, where the 'mainstream' is whatever they damn-well tell you it is.
Anyone who disagrees is thus 'weird', an 'oddball', a wacko, a crank, a suspect, or guilty until proven guilty
They won't go after someone like me openly, because if they wanted to do that what I have to say, and have written, would cause too much embarrassment, to much damage, create too many questions.
And that's the secret, be bold, be loud, be direct, don't back down to their slights. Call them precisely what they are, no more, no less. Point out loudly what they are really doing. Make lots of noise. And yes, they will know exactly who you are, and they will watch you, but they won't dare take you on or openly take you down, out of fear of inspiring a wildfire of resistance which they have no hope of managing, containing or massaging away.
That is what they fear. That is why they are ratcheting up this campaign to "turn down the rhetoric". It is having an effect on them. Just last week we had Hilary Clinton admitting that Iran's nuclear development is much more primitive than they had asserted previously, thus the move to another Israeli war has been turned back and countless tens of thousands of lives been saved, and a wave of decades of great evils stymied, simply by people speaking up very loudly, until the public realised they wanted nothing to do with yet another Israeli-concocted war.
The same ground-swell can be seen in the way the Fed in now under serious and unrelenting criticisms, and the questioning of its very existence by a very broad swaith of US citizens.
Refuse to have any fear of them or their criminal nonsense and dominance or the threat of some sort of FUTURE 'crackdown' on radical free-speech.
Speech which is not radical at all!
It is merely truthful which makes it seem intolerable and unforgivable, to them. Screw them, ignore all their implied threats. There are billions of us, we can take them at any time, and they know it. They need us to RUN their system, but we don't need them at all, it is that simple. We have the ultimate power, they do not.
These criminals love to say, "if you have nothing to hide then you have nothing to fear.", as they attack our privacy to obtain information on us that they can use against us, just as easily as to help us.
But it cuts both ways. If you have done nothing Mr. Pigman, then you have no reason to fear what you have not done. So why are you aso fraid of us, if you have committed no real crime against us?
But, however, if you have committed willful decades of global crimes, against us, and against humanity as a whole, then we will of course hang you by the neck until you have very obviously gagged to death.
How much fairer can we be?
As the protocols say Mr. Pigman, "Might is Right", ... right?
Im with you all the way. Nicely done.
http://www.youtube.com/watch?v=bAG5vBKmvcA&feature=related
Yes, agree that their objective is control.
What are municipal assets?
School buildings? Firehalls? Townhalls? Libraries?
If there's no money left in town, what good is it to hold these assets in a defunct economy?
0 x 0 = 0
Might as well buy villages of Potemkin.
EDIT: Just read further in your comment and loving the passion.
I'm a passionate crime fighter. These banking syndicates (a few families whose names shall not be repeated) are fucking the world over and over. It's criminal in my book and they should hang.
Do we have a plan for after the PLAN?
Members of the Rothschild family involved in "the family business", and ALL of their partners in crime to be taken dead or alive (preferably very, very dead).
A Govt which is now little more than the willful puppet of Jerusalem and blatant betrayer of the REAL US citizenry
Islamic sovereign wealth funds only provide peace and happiness for the non-Islamic world?
Great ideas and thoughts are ultimately cast into the heap of idiocy when filled with threats of death and racism.
It's neither a threat nor is it 'racism'.
It is called self-defense, and it is 100% legal in such a situation.
Have a nice day
Just War Theory is invoked.
http://en.wikipedia.org/wiki/Just_War
Refresh the Tree!
Element, good discussion but lets not forget:
"Why Steal less, when you can Steal More!"
Wall Street mantra, 2011
Mish is going to be on this like white on rice.
Absolutely.
Right after his diatribe about the number of nail salons....
Yea, those municipalities may be able to get out of their debt but how will they be able to get anymore investing via the munibonds if they are going to the same people they screwed over.
See Goldman Sachs' "clients".
http://www.halfpasthuman.com/badfood.html
Read the last few sentences...
If it's worthy, can someone post it as an article? I seem to be unable to contribute at the moment...
Anybody know how many CDS contracts have been written on the debt?
My guess, $200 billion, but it could be $200 Trillion, as though that would make any difference.
Vallejo is a s... hole. Don't go there you will be mugged
China was bestowed gift upon gift today. It started with Obama taking Hu's coat, had a nice pause for lobster dinner, and ends with gold being sold to Asia at today's low. The US is pleading with China to combine their power with the US corporations in an attempt to conquer the world. China looks pleased to go along.
There is a lot the corporations can learn from China, and China the corporations. There is a lot of benefit too. If the rest of the world can be dominated the same way that China dominates its populace, the Corporate Takeover will go off without a hitch. If China can continue to use the corporations as a tool to further their building of their empire, they have the chance to rival America and Europe as the dominant geo political state.
America looks downright pathetic graveling at the feet of the corrupt Chinese government. It is not that either is better, but that both are down low and dirty doers. It is a strawman to think America is good because China is bad. This is the Hegelian dialectic and this is a false paradigm.
The economy functions in a similar matter. The question, 'what is a better trade' is a paradox when the only answer is 'none but gold'. Compare sectors, and be distinct. Mining and oil fit together because the machinery uses oil to dig the ground. How would these two sectors benefit in a world of post peak production? After the question of oil and metals, consumer items come to play. Food before all else, and discretion comes from how much spending power? There will always be privileged but how and how many? The class system can be evened out, but excesses will not be cheap. How far are we willing to go?
The downfall of the middle class is almost halfway down the rabbit hole. Soon Muni Madness will teach this "class" that houses are common things, usually. Many houses have been and will be built, and most of them poorly. China has many houses, houses I assume many Americans will use as homes post peak oil while Natural Gas is struggling to power the world. Natural gas will have in between 2015-2040 to rule. Many cities will pop up near Natural gas deposits. What can not be piped will be made liquid and shipped. America will struggle during this time. So much so many people will move Sur, to the Middle East, and to Europe. America is amazingly separated from natural gas reserves. What will save America if she can not get her dams together before the price of oil goes stratospheric? The North East and North West should be fine, but areas that do not have hydro will be in trouble. There will be dead zones that will be forced to adapt to solar or perish.
Then sometime around this spectacular happening fiat currencie will struggle to trade for and with commodities (especially energy). It will be that time when they are pronounced dead, and Keynesian theory with them. I do not have to be dramatic to demonstrate what will become of Krugman and Bernanke. They will be thoroughly discredited, at the least.
It will be then that currencies are once again rationed by ounces of precious metals and then these will set the metric for price. It is rudimentary, but how exact is anything? Science and math get one to philosophy and then the mind can push no further. We are limited, we accept that.
Here and now the Main Steam Media pushes memes like drugs on its chainless captures. TVs flash brightly and stun the watchers into believing the world is a certain fairy tale. The fairy tale of life runs deeper than what the Stream is believed to be. Stream to delta and delta to sea, we are all and all are we.
So there was the .com bubble, then immediately following was the housing bubble. In this time span, a lot of housing and retail were put up. Now all of that has to unwind.
When was the last time a serious bit of growth was actually based on something fundamental?
Oops... looks like the Muni Queen Alexandra Lebenthal is wrong. Excerpt courtesy of Business Insider
Lebenthal thinks Whitney's "numbers are way off," and like PIMCO's Bill Gross, doesn't think states will default, in part because the federal government would never allow them to.
"I don't dispute [Whitney's] knowledge of the investmentbanks, but she is not a municipal bond expert," Lebenthal said. "I would put any muni analyst in a room with her -- on TV, outside in the school yard -- and see who comes out ahead."
For one thing, bond holders have long enjoyed strong protection in the courts, she said, even when New York City teetered in 1975. They come first in line ahead of police, fire, trash collection and other obligations, she said.
Read more: http://www.businessinsider.com/muni-bond-queen-alexandra-lebenthal-slams-meredith-whitneys-munipocalypse-predictions-2011-1#ixzz1BXyzBmdW
fat jew (yes another one)
Would anyone like to play Dominoes?
um the muni bonds I used to buy all came with insurance so along as the insurance co. stays solvent I would not expect any bond holders to take a haircut once the dust settles. Anything different about Valejo bonds? Any documentation that the some idiots bought the bonds without the insurance?
Here comes the rain again...
China has scripted the future for the rest of the world.
China currently has one vassal state: North Korea.
The rest of the world governments are at China's feet to become its vassals. Featuring, Disneyland for the vassal government elites. Fine Chinese cuisine for its elites. Chinese trinkets for its elites.
For the middle classes: Grass to eat for food. Grass to smoke for pleasure. Grass to burn for fuel.
For the lower classes: Shit to eat. Shit for pleasure. Shit to burn for fuel.
Live it. As Obama's picture showing him holding: A post American world:
http://www.morningliberty.com/2010/04/23/barry-soetoro-barak-obama-holdi...
So you could say that Vallejo has "5 On It":
http://www.youtube.com/watch?v=g5sfI9YuIc0&feature=related
Just so we're clear, the plan is to leak constant bad news about munis, generate a flood of selling from retail investors, so banks can buy them up cheap before the fed bails out munis for full price in QE3?
True that.
The local pizza place has prominent, and I mean prominent symbols on every ad for an extra large pepperoni with a two liter of cola and cookie dough "EBT Gladly Accepted" (Electronic Benefit Transfer) or "Food Stamp Magic Debit Card".
No need to get all worked up about it. The California CAFR report shows there's 1.2T in extra money in California. But of course it has been siphoned off into accounts that cannot be used for this item or that item due to statutes and legal restrictions.
If Vallejo is anything like other cities, they are rolling in credit stolen from the people. Let me explain how the Ponzi goes:
1. I didn't cut weeds in a lot this summer.
2. The city sends me an unsconscionable contract in which I will owe $100 per day if I don't call the city and have them come out to see the grass cut. The contract further states that for every new month, the cost will increase by $100 per day. Thus, the second month is $200 per day, and the third month is $300 per day.
3. Am I worried about this stuff? No.
4. They sent me copies or presentments 4 times for a particular date like June 11. That makes 4 valid presentements equaling $400 for that day.
5. Then they send me another two other presentments, each kicking off the next month with an additional $100 until December.
6. However, every month they send me a Statement of Account that I owe in total, which is a perjury of the true bill. For example, at the end of the first month of billing, the city says I owe $300. Now that's a lot of fine for not mowing a yard. Actually, counting up the tally for the contract month the bill should have been a total of $2000.
7. Why such a discrepancy? First, it's a fake bill. They are billing under color of law. Second, they don't want to alarm people that they are stealing their credit. After all, they obtained $2000 from my credit account at the US Treasury.
8. By the end of the second month, the credit stealing was up to $15,000, but the bill they sent was a fine for $600. Now I'm sweating. lol
9. By the end of the third month, the credit stealing was up to $27,000, but the bill was $900.
10. Does it seem normal that a city can steal $27,000 of credit from a "person" for not mowing the lawn?
This pattern of billing follows the UCC (3-501). Look it up on Cornell law.
So I just sent my birth certificate and social security card to the US Treasury (after filing my financing statement UCC 1) and noticed them to discharge all debt public and private.
The cities are rolling in the dough, but stealing it all any way. California RIP and good riddance.
Dudes who haven't read UCC Articles 1 through 9 are way behind. There is no need to be alarmed, just discharge the debt under color of law. If you still don't know that we have a debt-based monetary system based on the buying and selling paper, then you have let your country down.
It's not grammar you should be worried about, but rather diction. It's diction that the PTB use to capture us, as in the UCC and Black's Law dictionary (4th edition).
Kick the can down the road.
Who knew at the end of the road was a brick wall?
Kick it as hard as you want.......the kicking is over.