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Seems like the PPT was back in effect today. I thought that ended?
Beter enjoy an take a picture of it because you're grandchildren will still be paying for it...
She is a lessor God.. you should be so lucky as to know her.
Meredith Ann Whitney (born November 20, 1969) is a banking analyst and frequent contributor to CNBC, Fox Business, and Bloomberg News programs. ...
Education and career - Rise to fame - Recognition - Personal life
I haven't seen a day where the 10yr T has gone down and remained down like today...it almost always recovers after the Equity sell off abates!?! Not today...just sitting there at 2.16%...very bad omen??? Yields still falling in AH's...I feel like I'm turning Japanese??? Last time T rates were this low, S&P was sitting about 700.
With T yields like this (now 2.158%) and 30yr mortgages heading for 4% interest rates...how could BB justify the need for balance sheet expansion for more QE??? Or will BB move to the MUB world and start the propping there???
Short MUB US EQUITY
this is a terrible trade, everyone know NJ, CA, and IL have issues, this is old news, if you would have shorted mub when everyone was muni fear mongering you would have gotten your ass kicked
Haircuts has to be applied to Munibonds so ALL munibonds gonna worth less yes or yes sir.
Its not just a problem of SOVEREIGN BONDS across countries, ------the next crisis = SUBGOVERNMENT FIX INCOME
For example in SPAIN all the subgovernment bonds.---- SPANISH COMUNIDADES AUTONOMAS ARE IN DEFAULT----ALL
Specially Catalonia, Valenciana,Andalucia ---- Impossible to repay their debt till XXX Century.
AA-, really? Same old shit from same old raters.
Expropriation at gunpoint is the best racket going.
it really is more like a AA-(+++) if you know what I mean? wink wink, nudge nudge and dont forget the bird dog fees! never mind the New York DA and his bullshit about kick backs.. he's just a cock blocker.. Oops! never mind he is gone now and the other guy is sooooooooooooooooo a team player! YAYYYYYYY!
There is a lot of disruptive news today. Seems like somethings about to really let loose.
IF NJ was a company, it's debt would be C. The special consideration for government entities is absurd. There is simply no possible way New Jersey can meet its pension obligations. Why is the benefit of the doubt being given to them?
You are missing the point. Pensions and services can and will be cut, dissolved, whatever. Just operating expenses to reduce in line with revenue.
Creditors always take precedence, and ultimately this precedence isn't of a legal nature. If any party screws a creditor, they won't get credit again without losing some blood.
One big difference is - and I don't know about NJ or these bonds specifically - state constitutions often require that the bonds be paid by tax increases if necessary.
So New Jersey is totally broke....
99% of the population are South American unemployed "citizens" who all lost their greencard because the dog ate it....
AND THEY STILL HAVE A'S IN THEIR RATING?!!
Fitch downgrades 21 bonds in 12 US CMBS transactions
Fitch the same that says US is AAA=? lol
Considering the downgrade, I may delay my plans to build luxury condos in Camden.
Yes, but you might want to consider invewsting in the Revel Casino.
There's also some land at the site of the former Pennsauken Mart that George Norcross III (King George III) is looking to unload that would be perfect for some condos. State Senate President Steve Sweeney will be happy to send his Iron Workers over there to "negotiate" a contract.
fuck you NJSP ! retire at 45 and take another public job for 20 more years while thinking the NJ taxpayer is going to keep paying your pension while paying lifetime benefits for you family (and girlfriends family).......PIGS has taken on a whole new meaning
WOW -- New jersey must really be sucking to be downgraded by fitch after they just yesterday re affirmed the U.S. AAA rating saying ALL WAS WELL!
Chris Christie for Prez in 2012!!!!!!!!!!!!!!!!!!!!!
Has he been to the Bilderberg Meetings yet?.............
Meredith Whitney is not sooo hawt but I would take one for the team.. she is kool enough that we all owe her one on the house.
@JW Zorba would not kick Meredith from bed either, but Zorba's wife would.
half is a LOT! 50% is a LOT!! and then the 50% of income you have left.. half of that too! so it is really more like 75%.. unless you can get an irrevocable trust back dated, dont try it! then she gets is all and you go to jail too!
Where the heck is ANY coverage of S&P's downgrade on the US economy [you know, beyond ZH]? Seriously, are we saving that as some sort of "surprise" for the algo's tomorrow? Are the fellow who backed the downgrade now being carted to prison by the jack booted thugs of President Zero?
This is most peculiar.
Ulta Top Secret(s) of the Untied States!
U.S. Down Grade is #1..
followed closely by??? Ron Paul's Polling Numbers!
Well they should be contributing about $3.5b a year to pension fund. Christie is doing about 22% of that at $750m.
This is all going to end so well.
Who was the last governor to contribute anything close to 100%? Serious, just asking, I honestly don't know.
My guess though is you probably have to go back to Kean, if not further back than that.
I am not sure I agree with Fitch's assessment because in pension accounting a company would setup a liability account for the shortfall, and an offsetting intangible asset which reflects the 'goodwill' of the employees which, in theory, reflects the 'value' of their work. With all that goodwill floating to the surface shouldn't they have received an upgrade?
For those unfamiliar with pension accounting, yes, I am being sarcastic.
Christie caved to the unions. All NJ governors do. They have to. Otherwise, they go all Anthony Provenzano on your ass.
What does state GO bonds have to do with munis? I thought muni bonds were county, district and city.
Munis are state go, city, county, school districts, universities, airports, not for profit hospitals, water and sewer, electric utilities, single family housing, multi family housing, charter schools, nursing homes and the kitchen sink.
mounting budgetary pressure presented by significant and growing funding needs for the state's unfunded pension and employee benefit liabilities, particularly in the context of a weak economic recovery, a high debt burden, limited financial flexibility, and persistent structural imbalance.
Uh, save for a word or two this could be applied directly to the USA as well - yet didn't Fitch just re-affirm us as AAA, all the way?
Fitch (white house) slammed s&p (tea party). But now wacks NJ (rep)
How long will this go on?
Hey Fitch, when you get done shuffling through munis and used, discarded SEC porn portfolios, could ya take a look at the USSA credit standing. I hear it stinks.
NJ peasants still have change in their pockets. Progressives must go door to door to present a donation campaign to save the state against bankruptcy. I can envision the new marketing slogan..
Kollective Government is your only HOPE
The Justice Department is investigating whether the nation’s largest credit ratings agency, Standard & Poor’s, improperly rated dozens of mortgage securities in the years leading up to the financial crisis, according to two people interviewed by the government and another briefed on such interviews.
"That's the Chicago way!!"
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