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Muni Ratings Slump As Bankruptcies Rise, Surpass 2011 Total
Credit-rating cuts were made on more than $200 billion of municipal securities in the first nine months of this year, exceeding the total for 2011, and there’s no end in sight. Bloomberg Briefs also notes that it is not just the weaker Californian cities (such as Fresno) but even Los Gatos (an affluent town about 50 miles south of San Francisco, where Apple's Steve Wozniak lives) is facing possible rating downgrades. Moody’s is concerned that cities might skip debt payments in a cash crunch to preserve services and meet payroll. The decisions to seek bankruptcy “provide some indication that willingness to pay debt obligations may be eroding in the U.S. municipal market,” according to the Moody’s report, especially since California municipalities have limited ability to boost revenue. They can’t impose higher sales taxes without going to voters. Meanwhile Chapter 9 Muni petitions are now above 2011's YTD equivalent as California’s Mendocino Coast Health Care District became the 12th Chapter 9 petition filed year to date and the fourth from that state - up from just 5 Chapter 9s in 2010. Paging Ms. Whitney...
Chart: Bloomberg Briefs
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Vote Gary Johnson, Mitt Romney, or Barack Obama?
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Thanks for confirming what I already know: I am a libertarian.
free Meredith Whitney!!
FREE JOHN CORZINE!
(Oh wait. He is.)
Most Americans would be if they actually took the time and did the research.
And now I am
Los Gatos is also the home of Netflix...
GARY Johnson?
Crap, I voted for Arte Johnson - which is verrrry interesting....but stupid.
its just not worth reading you anymore Tyler - a guy could go bankrupt trading on the truth... good luck, they won
Friday humor:
AMZN P/E
3,098.37This should be a great driver of Prostitution Jobs globally as we head into the http://www.udderworld.com
A place that we all milk off each other.
But aren't Munis next on the Fed's buying list (or does the Fed move directly to corporate bonds?) and wouldn't that mean that soon the smart money front running the Fed starts buying Munis? So problem solved and the taxpayers via the Fed will be on the hook?!
I could see a future hearing where Ron Paul asks why Detroit MB's are on the Fed's balance sheet. :)
So Amazon misses on both top and bottom line and it's up 6 bucks. What a fucked up world.
We all know they are gonna fight this sell off for another two weeks come hell or high-water. That 0.2% better than expected GPD reversed more than 100 points on the Dow - that's not natural buyers coming in...
What gets me is that in the past when a GDP report would come out the" marke" would sell down because it's old news. The "market" already had that priced in. This is getting more than a ittle annoying.
I hear you. I guess I've become a little zen about it. I just assume I'm going to get screwed in the short term and my blood pressure doesn't go up as much. I keep adding to my gold and shorts and if it breaks I'm prepared...if it doesn't, then I'm just another poor soul who fought the Fed and lost.
You guys are wildly optomistic compared to me.
How so?
Because I am not sure what I should be rooting for at this point. Financial repression for the rest of my life or a reset that will probably wipe out almost everyone. If we get the wipeout I am probably more prepared than others, especially in my area. But I will fully admt that my skills reside in the market like some others on here. I tip my hat to those who live elsewhere and have a subset of skills that will probably be a hell of a lot more useful if the shit hit the fan (cue laws of physics smacking me around). I don't think I get away with some market crash and a rebuilding phase. Whatever shred of confidence in the markets that remain will be gone. The market will be gone and most likely the landscape will be very different. Sitting on your porch with your shotgun sounds nostalgic as long as you can avoid sleeping 24 hours a day.
There is a part of me that hopes we get out of this and somehow can start over and rebuild together but I don't put much stake in it. I am not sure where that leaves me.
The more times passes, the more I think this mess will play out for the next 10 or 20 years. They will print globally to spread out the misery - but the SOBs at the very top will (sooner or later) take losses and pay more like it or not. Everyone has been living in fiat fantasy land and reality will reassert itself - standard of living will fall considerably, but I don't think all hell is going to break loose.
Maybe just wishful thinking on my part...
It does seem more likely that one entity after the next will come to the brink of failure (pensions etc.) and bailout after bailout happens. I don't see how we don't end up with massive inflation in that scenario crushing most people along the way. In some distorted way I am probably more prepared for that.
It's been the same story for at least the last severa quarters. Miss both top and bottom line. And in spite of top line misses they keep spinning it as an invest-for-growth story ... it's nothing more than a game for fleecing shorts it seems.
I work for a Muni. as Engineer and read the financial statement online for fun.
206,000 population and over one billion in revolving debt.
946 City Police.
56 Univesity Police.
Consulatants make hundreds of millions while city engineers just sign the invoices.
almost 4 years of aggravation and nobody even gives a damn.
All the consultants are Yankee carpetbaggers who take the money and spend it elswhere.
Property tax rate is $1.02 per $100 assessment. $1700 on a 1200 ft2 House
I hate working on a municipal level as a contractor. Getting paid in a timely manner is the challenge there, unless you are a business consultant and recycling oxygen.
The irony it's the business consultants that are supposed to point out waste when the reality is they are the over head waste.
lol I'm still waiting to get paid by the World Bank
Guys! The consultants come in and schmooz the City council. Take them to dinner and tell them how smart they are for going ahead with whatever their latest spend money plan is. They are part of the inner circle of course they get paid and paid well.
No shit.
I work for the city.
The fucking consultants run the show and act as if they work for the contractor.
My job is to recover funds, for the city, from the state and federal gov't.
The fucking carpetbagging scumbags bill for every nickel on a task order whether the consultant has earned it or not. They bill until the task order is exhauted. Then my boss will issue a new task order in round numbers such as $1,000,000 or $1,500,000. They always bill every nickel.
I keep all the records and email them to my personal email adress just in case they fuck with me.
atta boy,
MBA's are dirt bags. Keep everything loaded and in the chamber when dealing with them.
One FOIA asking the value of about 100 contracts is all it would that make a nice front page story.
They keep everyone separated so one hand doesn't know what the other hand is doing.
Procurement, finance and my department all carefully segregated to hide the connecting pieces.
I just happen to be in a position, and happen to actually give a crap, to put the pieces together.
City Gov't is an ongoing conspiracy to commit grand larceny.
No one cares, they just move to the suburbs. 40% of the city's population lives below the poverty level the rest of us are rolled continuously.
"University Police"? What's that?
The country..the world needs to reset...how we reset is the question...
Resets are always bad. TPTB are like a drowing man - they will even drag their rescuers down with them trying to save their doomed position. Personal resiliancy is the key - that way you can batton down the hatches and try and weather the storm. . .
I want to know who the Fed saved last night by buying a shitload of Amazon last night.
Bezos must supply politicians with Asian sex slaves or something.
How that company can continue to get away with this we'll make up the loss on revenue BS is beyond me. Getting away with selling stolen and counterfiet merchandise should have been enough to shut them down.
The FBI goes after shoe and purse counterfeit rings and siezes billion of dollars in merchandise. Yet Amazon is allowed to sell and ship counterfeit products all day long. More than half of the electronics are black market goods from Russia. You don't think Amazon really gets to buy a TV for $200 less than the cost to Best Buy do you?
The new normal, it isn't crime if Wall Street can get rich off it.
Doesn't matter if Bernanke stays or they put someone new in, the FED will be buying toxic muni debt along with toxic mortgages and continuing currency swaps to benefit foreign governments and propping banks at all costs.
The debt ponzi must be maintained, perception must be managed, free markets must be suppressed.
All hail Caesar!
Exactly ebworthen. All the muni funds I see are up big ytd. This is a classic example of don't try to trade this news. A fed backstop is no doubt in play here.
must be why the fucking thugs with badges are so pissed off everywhere.......time is up !
NYPD Officer Held in Plot to Cook Women and Eat Them
By JOSEPH GOLDSTEIN Published: October 25, 2012
http://www.nytimes.com/2012/10/26/nyregion/gilberto-valle-accused-in-plot-to-kidnap-women-and-cook-them.html?src=me&ref=general&_r=0
The South was right!
We didn't lose! We are just regrouping.
Our state has the most machine guns of any state in the Union.
We will send these Yankee queers back north where they belong.
Next time we will invite China to back our cause. Let's see how the North handles that one!