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Meredith Doubles Down: Move Over Munis, Here Comes The "Hidden State Financial Crisis"

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Tue, 05/17/2011 - 20:32 | 1285363 The Feds Connection
The Feds Connection's picture

All this doom. I watched max keizer show on 24france yesterday. Taped on 28 oktober 2009 in which he sayd financial catastrophe would hit again in in 6-9 months. How long can this be stretched?

Tue, 05/17/2011 - 20:36 | 1285369 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

"How long can this be stretched?"Many a man has had the same thought.

Tue, 05/17/2011 - 20:48 | 1285410 Sgt.Sausage
Sgt.Sausage's picture

I see what you did there.


Wed, 05/18/2011 - 05:11 | 1286325 cossack55
cossack55's picture



Wed, 05/18/2011 - 09:41 | 1286707 squib
squib's picture


Tue, 05/17/2011 - 20:39 | 1285371 The Feds Connection
The Feds Connection's picture



Whatcha gonna do? i dont know! Just some lyrics. check it out,

Tue, 05/17/2011 - 21:26 | 1285599 max2205
max2205's picture

Oh no seal team 6 is flying to discuss this with Osama Whitney. With any luck at all the helo will malfunction

Tue, 05/17/2011 - 22:43 | 1285800 ebworthen
ebworthen's picture


They'll helo over to Pakystan to double-tap OBL but leave the Terrorists on Wall Street and Washington unmolested.

Where is our Military and Judiciary and FBI and Law Enforcement and their oath to defend the Constitution? 

As the Constitution is trampled they are tasked with chasing down religio-fascists in the Middle East.

How convenient.

Tue, 05/17/2011 - 23:33 | 1285954 JW n FL
JW n FL's picture


This story with great links that George put together is fantastic! that is where LEO's and all the others who swore to up hold the laws written by the duely elected are..


Corporations Own the Lobby!

The Lobby Owns the Government!

Law Enforcement works for the Duly Elected Lobby Whores!

We the People = Screwed!


Wed, 05/18/2011 - 12:26 | 1287519 nowhereman
nowhereman's picture

Yes, the powers that be are becoming afraid.  Their media whores are unable to keep the unrest under wraps.  Now they have to aim the "power" of government at the people.  Anyone who criticizes the government is now an "enemy combatent" and our sons and daughters will be used to keep us in our place.

It's all over except for the crying.

Tue, 05/17/2011 - 22:25 | 1285790 ebworthen
ebworthen's picture

It is amazing isn't it?

I bet Hitler would sit back some nights and say to himself:  "Holy shit, they let me get away with that too?  WTF!?!?"

Think of FDR confiscating gold and shutting down the banks.  "Holy Hell, no one assasinated me - all the WWI vets rolled over - wow."


Tue, 05/17/2011 - 20:38 | 1285377 Cleanclog
Cleanclog's picture

All this liquidity in system, slogging around, still not multiplying into any meaningful money supply expansion in terms of economic goose.  So . . . if we still must delever the old fashioned contractionary, not inflationary, way then yep, State, Munis, more households and some small businesses must renegotiate debt, go bankrupt, renege on obligations.  More pain ahead. Sorry.

Wed, 05/18/2011 - 05:33 | 1286336 Popo
Popo's picture

Yep.  Poor Ben.   Inflation isn't working the way it's supposed to in his dusty old thesis.    This whole darn globalized economy just lets liquidity run out the door.   The only animal spirits that are getting juiced up on Ben's free-money are the spirits of emerging market economies.

If only there was a way poor Benny could tell the money where to go.   But of course, there isn't.  And the marginal returns on new liquidity are plunging faster than DSK's trousers.   The more Benny prints, the more the rest of the world goes up, and the faster America sinks.

He knows he's fucked.  The panic must be setting in.  He must be telling himself on a daily basis that his thesis will work eventually... just a little more time.

Meanwhile, gleaming Asian cities filled with luxury boutiques, five-star hotels, and world-class hospitals are looking more and more like the "First World", and America looks like the "Third".   Just a little more printing Ben.  Eventually you'll be right.... sure you will.

And hey -- if it turns out you're wrong -- the bankers will still be your friends.  They're the one's invested in EM's anyway.   Heads the bankers win, Tails America loses.



Wed, 05/18/2011 - 09:03 | 1286601 mayhem_korner
mayhem_korner's picture

Do you really want money velocity to increase and get to $13/gallon?

There's two ways out of this mess - death by hyperinflation or 'cross-the-board default and restructuring.  Here's the thing, the former still gets you to the latter, just increases the size of the stone that must be passed.

We should've taken our lumps in '08 when the problem was 40% smaller.  Strike that, we should have taken our lumps 20 years ago...

Tue, 05/17/2011 - 20:41 | 1285382 lemonobrien
lemonobrien's picture

It'll last a good, long, while... look at japan.

Tue, 05/17/2011 - 20:43 | 1285390 sajeevnara
sajeevnara's picture


Tue, 05/17/2011 - 20:47 | 1285395 Gubbmint Cheese
Gubbmint Cheese's picture

It will only sound good when Jaime Dimon says it...

Tue, 05/17/2011 - 23:37 | 1285960 JW n FL
JW n FL's picture

JP Morgan’s leader “Jamie Dimon” says 100’s Municipalities in U.S. Won’t ‘Make It’ Out of Debt Crisis “Bloomberg” http://bloom.bg/gDo4Wb

Yep.. when he says it.. no one stands up and yells "CUNT!".

Tue, 05/17/2011 - 20:49 | 1285406 AUD
AUD's picture

The sooner we accept them, the sooner we can get state finances back on track, and a real U.S. economic recovery underway.

The sooner you accept them the sooner attention will turn to the biggest deadbeat of all... the sovereign. Inevitable but unacceptable.


Tue, 05/17/2011 - 20:50 | 1285409 Re-Discovery
Re-Discovery's picture

The funny thing is "State Services"?  What are they again?  State Highway Patrol . . . OK.  Whatever.  I have a gun and security system, and I like to drive over the speed limit.  They're irrelevant.  Education?  I'll educate my daughter thank you very much.  Transportation?  I'll dodge the potholes.  Fire?  F- you, I have insurance.

I hate every level of government so if the state goes away, I dont care.  I'd much rather the state be the sovereign than the Feds but they lost that battle decades ago.








Tue, 05/17/2011 - 20:52 | 1285433 Seymour Butt
Seymour Butt's picture

Why don't you move to Somalia? Don't let the door hit you on the way out.

Tue, 05/17/2011 - 20:55 | 1285447 mynhair
mynhair's picture

Very intelligent response, makes me look like a genius. 

You in Shiela Jackson Leigh's district?

Tue, 05/17/2011 - 21:37 | 1285640 Central Bankster
Central Bankster's picture

I prefer parasites like you, leave instead.

Tue, 05/17/2011 - 21:47 | 1285677 Re-Discovery
Re-Discovery's picture

does somalia have one layer of govt?  And a constitution (yes we still have one.)

Tue, 05/17/2011 - 22:04 | 1285728 BigJim
BigJim's picture

You mean a 'country' that has absolutely no ethnic or cultural reason to be a contiguous state, detroyed by years of colonial meddling and collectivism? What's that got to do with wanting to reduce government? Somalia is the end result of too much government, not too little.

Tue, 05/17/2011 - 22:22 | 1285779 Re-Discovery
Re-Discovery's picture

My point exactly.  Folks think that I advocate nothingness. I am for an government that functions on the consent of the governed.

I advocate the lack of multi-level, state supported 'nothingness' and the promotion of individual, consent-backed SOMETHING.  A future determined by the stakeholders who secure it, NOT the parasites who seek a free ride.

Wed, 05/18/2011 - 12:29 | 1287556 nowhereman
nowhereman's picture

Not too much government, too much IMF.

Tue, 05/17/2011 - 22:49 | 1285861 living on the edge
living on the edge's picture

Seymour=Butt Head

Tue, 05/17/2011 - 20:55 | 1285436 mynhair
mynhair's picture

but...but...who'd register your property liens?

Tue, 05/17/2011 - 20:56 | 1285453 Dejean Splicer
Dejean Splicer's picture

I keep hearing bullshit from the muni-squawkers that they have to raise taxes or 'essential' services would be dropped.

You won't be safe. Mayhem will rule the streets and you will be imprisoned in your own home. 911 will take 90-120 minutes to respond to the most dire calls only.

Fuck you douche nozzles! Raise my taxes and YOU'LL be calling 911!

Tue, 05/17/2011 - 21:18 | 1285544 Re-Discovery
Re-Discovery's picture

I only own an old Shotgun, but I agree.  I see NO benefit to local and state government.  Street cleaning?  Maybe?  Please someone enligten me.

I got junked for something,.  Again, I have no clue what for.  Reduce government, be that the layers or whatever.  I dont care who goes bankrupt.  Tell me what they do and maybe I'll re-consider.

Tue, 05/17/2011 - 21:26 | 1285593 johnnynaps
johnnynaps's picture

Oh, but you see the FBI, CIA, Homeland Security, 535 worthless politicians, and a military that doesn't even reside in this country as being more important than your local services? Just playing devil's advocate!

I feel we need teachers that teach worth-while subjects. Cops that protect and don't bill collect (I like to speed too). Real judges that understand jailing someone carrying a pound of marijuana isn't worth costing the state 500 grand. Shit this country really needs a dictator for the next 5 years, the whole system blows dirty donkey d##k!

Tue, 05/17/2011 - 21:42 | 1285660 Central Bankster
Central Bankster's picture

Who says we want ANY of those things? 


I want less local services, I want a smaller military, fewer national politicians, limited federal police, less regulations, a free economy and yes, more liberal drug laws.


You aren't playing devils advocate.  You just don't understand that some people who want small government ALSO want more freedom.  Understand?

Tue, 05/17/2011 - 21:51 | 1285691 Re-Discovery
Re-Discovery's picture

My daughter and dog know where the government is in this house.  We have never had a govt employee come over and offer ANYTHING to us.  But we pay anyway.  (I will live with potholes.)

Wed, 05/18/2011 - 07:01 | 1286386 I am a Man I am...
I am a Man I am Forty's picture

building/repair of roads, potholes, road cleaning, should all be paid for by the gas tax at the pump, other than that, I can't think of one single tax that benefits me or that I need or that I have used

Wed, 05/18/2011 - 11:17 | 1287159 baby_BLYTHE
baby_BLYTHE's picture

I'll live (currently do so) with potheads. Agree with everything you wrote.

Tue, 05/17/2011 - 21:53 | 1285692 Dejean Splicer
Dejean Splicer's picture

"I see NO benefit to local and state government."

I agree. The alternative is: if local and state gov disappeared, israel would instruct their sleeper-cell AIPAC to force congress to move in for the kill and we would be living under federal law.

Federal law that was engineered for us by israel. Everyone must be a Patriot.

Tue, 05/17/2011 - 21:32 | 1285608 masterinchancery
masterinchancery's picture

Pretty much on target for most of us; like to know who the weenies are that junked you.

Tue, 05/17/2011 - 20:50 | 1285419 Dejean Splicer
Dejean Splicer's picture

Meredith, you have to admit she has a very strong track record.

Very strong.

Tue, 05/17/2011 - 21:35 | 1285620 francis_sawyer
francis_sawyer's picture

She turned me into a NEWT!

Wed, 05/18/2011 - 00:27 | 1286040 Id fight Gandhi
Id fight Gandhi's picture

Seems to be good sport to rail her from the wall St bankers media.

Her timing may be off, but I do think shell be right

Tue, 05/17/2011 - 20:53 | 1285421 Barleycorn
Barleycorn's picture

I think we all need to calm down and take a lesson from Candide - Everything worked out brilliantly for him and his companions...

Tue, 05/17/2011 - 20:50 | 1285425 mynhair
mynhair's picture

Short CA.  Nuff said.

Tue, 05/17/2011 - 21:45 | 1285662 Central Bankster
Central Bankster's picture

Short California munis into the ground.  Anyone got an ETF?

Tue, 05/17/2011 - 20:52 | 1285435 floydian slip
floydian slip's picture

I heard the talking heads on bloomberg making fun of her this morning.


All I have to type is...Karma is a bitch!


Tue, 05/17/2011 - 20:54 | 1285437 jm
jm's picture

Translation:  expect a very modest increase in Muni defaults and huge operating budget cuts all over the land.

Revenues are drying up and this will last for years.  BUT with some exceptions, the local muni space has a cashflow problem, not a debt problem.  This means that financing is for capital expenditure and operating expenses and not rolling maturities.

This is a crucial point:  They can forego issuing new debt if needed.  Capital expenditure and operating expenses always get the hammer in this situation, not creditors.

If the world does go to hell in a handbasket, there is better recovery here than anywhere else. 

Tue, 05/17/2011 - 21:34 | 1285619 masterinchancery
masterinchancery's picture

Perhaps in your state things are doable--here in IL, where Barack was once a gofer in the Senate,  we are flat out insolvent on all fronts.

Tue, 05/17/2011 - 21:41 | 1285634 jm
jm's picture

Dup. Using a laptop

Tue, 05/17/2011 - 21:37 | 1285637 jm
jm's picture

I agree with you about Illinois.  California is a pile of trouble too.  But Illinois shows what happen when you HAVE to roll debt... you're effed.  States don't have that problem cut budgets to the bone but leave creditors untouched. 

I could be wrong.  I think country and city munis are where you are really compensated for the risk.

Wed, 05/18/2011 - 07:08 | 1286388 I am a Man I am...
I am a Man I am Forty's picture

you are correct JM, I manage munis, sold all munis in CA, IL, and NJ back at the peak and have been enjoying the return on our munis that were purchased a few years ago in all other states, and they are doing well this year 

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