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Harbinger Of Muni Bloodbath: Vallejo Offers Unsecured Creditors 5 - 20 Cent Recovery

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Wed, 01/19/2011 - 17:14 | 888233 Cleanclog
Cleanclog's picture

Tyler - For the headline, it is spelled Vallejo.


Wed, 01/19/2011 - 17:17 | 888245 faustian bargain
faustian bargain's picture

they had to sell one of the extra L's.

Wed, 01/19/2011 - 17:29 | 888305 66Sexy
66Sexy's picture


Wed, 01/19/2011 - 22:37 | 889103 Thomas
Thomas's picture


Thu, 01/20/2011 - 01:23 | 889287 Malcolm Tucker
Malcolm Tucker's picture

JP Morgan : King of the Food Stamps, they are the market leader in processing for the food stamp program!


Video of a bloomberg interview with the guy who heads up that division.

You really can't make this up.


Thu, 01/20/2011 - 01:57 | 889319 cocoablini
cocoablini's picture

Because food stamps buy "food" and as such is "money."
Food stamps ,a) keeps the masses fed,b) supports large corporation like Walmart and Coca-cola, c)helps the banks control money supply in all its forms. Yes, stamps are welfare fiat currency.
The banks are truly meshed with the politicians and it will take decades to unwind and decouple these 2 horrific entities from power.
JP can game the food stamp business, and help its buddies. If you haven't heard the "poor" can buy soda and candy with food stamps to feed their "starving" but if you want organic produce, well you are yuppie scum. You will have to settle for GMO poison instead. Snackwells, coke, capt crunch etc. Then the "poor advocates" who are just lobbyists for Pepsico and Nabisco say to force people to eat healthy is " scapegoating the poor."
Look it up- its true. Total corporate kleptocratic bullshit

Thu, 01/20/2011 - 00:46 | 889252 bania
bania's picture

More like #1, "high and tight" 


Wed, 01/19/2011 - 17:55 | 888433 Sudden Debt
Wed, 01/19/2011 - 18:35 | 888575 Mudflap
Mudflap's picture

Everybody was really upset when Arnie threatened to tax golf to pay for the CA deficit.  Much easier to sell the 'l' and keep on stroking.

I wonder if Bernie thinks POMO is a 'gradual' approach to the problem at hand circa one of his early (2004) speeches at the central bank? (used miniature golf analogy) ...

“Imagine that you are playing in a miniature golf tournament and are leading on the final hole. You expect to win the tournament so long as you can finish the hole in a moderate number of strokes. However, for reasons I won’t try to explain, you find yourself playing with an unfamiliar putter and hence are uncertain about how far a stroke of given force will send the ball. How should you play to maximize your chances of winning the tournament?

“Some reflection should convince you that the best strategy in this situation is to be conservative. In particular, your uncertainty about the response of the ball to your putter implies that you should strike the ball less firmly than you would if you knew precisely how the ball would react to the unfamiliar putter. This conservative approach may well lead your first shot to lie short of the hole. However, this cost is offset by the important benefit of guarding against the risk that the putter is livelier than you expect, so lively that your normal stroke could send the ball well past the cup. Since you expect to win the tournament if you avoid a disastrously bad shot, you approach the hole in a series of short putts (what golf aficionados tell me are called lagged putts). Gradualism in action!”


The alternative to gradualism, he said at the time, would be a “cold turkey” approach.  But that “carries the risk that policymakers will take strong action in response to information that may later be revealed to have been seriously inaccurate,” Bernanke said.

Source link: http://blogs.wsj.com/economics/2010/10/27/bernanke-on-gradualism-and-min...

He oviously opted for the 'cold turkey' approach...

Wed, 01/19/2011 - 18:41 | 888596 mt paul
mt paul's picture

golf tax....

per stroke over par ..

Thu, 01/20/2011 - 07:49 | 889476 nedwardkelly
nedwardkelly's picture

Great. Just what I needed, another scary swing thought.

Wed, 01/19/2011 - 21:39 | 888948 pyrometer
pyrometer's picture

It's not.  Vallejo's violent crime rate has always been high, it's going up and it's   infrastructure is crumbling.

Wed, 01/19/2011 - 23:25 | 889174 Lord Koos
Lord Koos's picture

Yep, I've been through there a few times over the years, it's a pretty funky town.

Thu, 01/20/2011 - 00:43 | 889248 QQQBall
QQQBall's picture

No doubt.... The bankrupt city named _____ seems like a nice place to live... what?

Wed, 01/19/2011 - 22:05 | 889035 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

they had to sell one of the extra L's.


Wed, 01/19/2011 - 17:20 | 888257 myTPisUSD
myTPisUSD's picture

or Valley Joe if you're trying to get hyphy with it

Wed, 01/19/2011 - 17:23 | 888277 faustian bargain
faustian bargain's picture

lol, 'hyphy', i haven't seen that term bandied about in a while.

Wed, 01/19/2011 - 17:30 | 888316 myTPisUSD
myTPisUSD's picture

Wasn't Mac Dre throwin jail for "conspiracy to rob a bank"? He shoulda taken tips from Timmah and the Bernank on how its done en masse of the people

Wed, 01/19/2011 - 17:24 | 888287 Cleanclog
Cleanclog's picture

Hilarious!  And so close to Hyphy Oakland too.

Wed, 01/19/2011 - 17:53 | 888419 Ras Bongo
Ras Bongo's picture

Or Valley Hoe


Wed, 01/19/2011 - 19:45 | 888770 andybev01
andybev01's picture

Duped again.

Wed, 01/19/2011 - 21:50 | 888972 Problem Is
Problem Is's picture

"Tyler - For the headline, it is spelled Vallejo."

And It's Pronounced: Val-E-HO
Bankrupt or not --- It's a dump... Armpit of the north bay...

Wed, 01/19/2011 - 22:52 | 889124 Misstrial
Misstrial's picture

US Con. George Miller's (D) District.

He is one of the power elites who wanted water pumps shut off for the western Central Valley farms. Seventy thousand people lost their jobs in ag. 

Recipient of contributions from SF environmental groups and labor unions. 


Thu, 01/20/2011 - 00:28 | 889236 TruthInSunshine
TruthInSunshine's picture

You can't get blood from a Vallejo, bandejo.

Wed, 01/19/2011 - 17:17 | 888248 EscapeKey
EscapeKey's picture

Given the amount of analysts practically falling over themselves in order to inform the sophisticated investors how wrong Meredith Whitney is, you knew it was coming.

Wed, 01/19/2011 - 22:45 | 889066 kujo
kujo's picture

Everybody knew it was coming. This is a manufactured crisis in the muni market, I think to chase the retail investor into equities. Dust off Meridith Whitney, a banking analyst, and throw in Jamie Dimon and whip up the MSM, you have a nice crisis. The retail muni buyer is about to panic and be fleeced.

Wed, 01/19/2011 - 23:00 | 889143 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Prescient article on how the Dollar could Rise 50% from here?...


hrh ADF

Thu, 01/20/2011 - 02:28 | 889340 Founders Keeper
Founders Keeper's picture

[Given the amount of analysts practically falling over themselves in order to inform the sophisticated investors how wrong Meredith Whitney is, you knew it was coming.]---EscapeKey

Agreed. Thanks for your post.


Wed, 01/19/2011 - 17:19 | 888254 Ancona
Ancona's picture

And so it starts. Let's see how long it takes for investors to start bailing out en masse.

Wed, 01/19/2011 - 17:25 | 888289 Quantum Nucleonics
Quantum Nucleonics's picture

They've been bailing out for weeks, if you look at the fund flow reports.  There are now at least a couple funds shopping multi-billion dollar sell lists.

Wed, 01/19/2011 - 17:34 | 888337 Strider52
Strider52's picture

Wow, pretty soon there will be nothing left to invest in except paper ETF's and metals-in-hand. When all of the metal is gone, invest in canned food, bottled water, guns & ammo. When those are all gone, die.

Wed, 01/19/2011 - 17:43 | 888385 topcallingtroll
topcallingtroll's picture

There is a better option. Its time to organize for mostly peaceful change. Kprice1670@gmail.com

Wed, 01/19/2011 - 21:59 | 889008 UncleFester
UncleFester's picture

I'm calling a top on peace.  Yep, looks like it'll roll over in 2011.

Wed, 01/19/2011 - 22:55 | 889140 Joe Davola
Joe Davola's picture

large unemployment rolls = cannon fodder

Thu, 01/20/2011 - 00:43 | 889247 Terminus C
Terminus C's picture

Herein lies the long term goal of the U.S. government.

Thu, 01/20/2011 - 02:06 | 889325 faustian bargain
faustian bargain's picture

Be All That You Can Be!

Wed, 01/19/2011 - 17:21 | 888262 DonnieD
DonnieD's picture

Bulldoze it and turn it into a Winery. I'll buy a case of 2012 Cabernet.

Wed, 01/19/2011 - 17:26 | 888294 SheepDog-One
SheepDog-One's picture

That will just be a bottle filled with blood.

Wed, 01/19/2011 - 17:33 | 888328 andybev01
andybev01's picture

6-Flags, lowered to half mast.

Wed, 01/19/2011 - 21:53 | 888989 Freewheelin Franklin
Freewheelin Franklin's picture

Liquidity injection?

Wed, 01/19/2011 - 17:21 | 888264 sodbuster
sodbuster's picture

>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...<


Just wait for the reaction of all the other cities, towns, and states, when they realize it is possible to get out of THEIR unsecured debt for 5 to 20 percent!! Happy Days!!



Wed, 01/19/2011 - 17:33 | 888331 andybev01
andybev01's picture


Wed, 01/19/2011 - 17:34 | 888336 SheepDog-One
SheepDog-One's picture

Yea maybe, but then what?

Wed, 01/19/2011 - 17:50 | 888410 Pladizow
Pladizow's picture


Wed, 01/19/2011 - 18:22 | 888519 chet
chet's picture

QE3.  All your munis are belong to the Fed.

Wed, 01/19/2011 - 17:45 | 888395 gorillaonyourback
gorillaonyourback's picture

very good point, if you look at 1 percent own 88 percent of wealth and 5 percent own 93 percent.  i think the numbers r ok.  fuck em all the cities and states should go bankrupt


Thu, 01/20/2011 - 01:32 | 889290 johnnynaps
johnnynaps's picture

Which means it should be 88-93% "their" fault when TSHTF!

Wed, 01/19/2011 - 17:22 | 888268 irishlink
irishlink's picture

OMG. We will be solvent here in Europe if we pull off a haircut like that . What could we name it? A 23?

Wed, 01/19/2011 - 20:40 | 888847 Rainman
Rainman's picture

No 5-cent haircuts for you, your hair is much too long. Double price.

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