How convienent

[osoab]

I included the quotes above the true reason for the post. Stupidity/leachfuckerness needs to be pointed out.

Really a story about a tiny town with a lot of debt and pension obligations.

The fact that the bondholders cannot take a hit is quite amazing due to state law.

Does anyone know how to find out the top bondholders for Central Falls or for any muni at that?


Tiny New England City Faces Big Financial Problems (http://www.foxnews.com/politics/2011/10/04/tiny-new-england-city-faces-big-financial-problems/?test=latestnews)



"Where's that leave our country if you can just walk away from your obligations? I think cooler heads have to prevail. We have to take a big look at it and hopefully we'll be able to get out of this in a mutual agreement, if you will," said Andriole.

"There was an agreement. A promise made. It should be kept," argued J. Michael Downey, president of the Rhode Island Council 94 of the American Federation State, Country and Municipal Employees. The union represents more than 30 municipal employees in Central Falls.

One of the most unique parts of the current bankruptcy effort shields bondholders from losses, preventing stakeholders from suffering the sharp cuts lenders often see in bankruptcy situations.

State leaders put the rule in place to calm the credit (http://www.foxnews.com/politics/2011/10/04/tiny-new-england-city-faces-big-financial-problems/?test=latestnews#) markets.

[Joe King]

State leaders put the rule in place to calm the credit (http://www.foxnews.com/politics/2011/10/04/tiny-new-england-city-faces-big-financial-problems/?test=latestnews#) markets.


Because they too know how their bread gets buttered.

[palani]

Would the pyramids have been built if the society building them required CREDIT?

How many other ancient monuments were based upon MUNICIPAL BONDS for their construction?

Would the Statute of Liberty have a foundation if MUNICIPAL BONDS were involved?

[Twisted Titan]

If they think they are beyond the reproach of frenzy feeding parasites

They had best talk with GM bondholders as they would have a grand tale to tell

[Glass]

I wonder if a rule is a law or if it is something else?

[Joe King]

I wonder if a rule is a law or if it is something else?Yes, it is.

[General of Darkness]

This seems pretty appropriate in today's market.


http://www.youtube.com/watch?v=l8jIIPocqUU

[Glass]

Yes, it is.

Thanks for clearing that up for me :confused:

[Joe King]

Thanks for clearing that up for me :confused:lol

Sorry, "rule" is an informal name for a law or regulation or Court order. It can also be a procedural rule.
That's why I said yes, it is. Because it can be a law or something else.

Rulz can be many things, but one thing we all know is that they are made to be broken.
Or at the least wrapped around ones pinkie finger in a quest to use them to ones own advantage. >:D

[mamboni]

I included the quotes above the true reason for the post. Stupidity/leachfuckerness needs to be pointed out.

Really a story about a tiny town with a lot of debt and pension obligations.

The fact that the bondholders cannot take a hit is quite amazing due to state law.

Does anyone know how to find out the top bondholders for Central Falls or for any muni at that?


Tiny New England City Faces Big Financial Problems (http://www.foxnews.com/politics/2011/10/04/tiny-new-england-city-faces-big-financial-problems/?test=latestnews)










And if the townsfolk, who are the ones who obviously are going to get gouged for the money, don't have it, I suppose the toen will jack up property taxes and fees and probably force these people out of their homes in order to satisfy the Bond holders. And the town owes all these bonds because the town officials spent too much for years building things and providing "services" no one needed or wanted. And the town officials were "induced" to overspend by the promise of fat pensions and benefits and some cash-filled envelopes on the side. And the bankster who issued these bonds will screw the officials out of their "pensions" and eventually owe the entire town. Imagine this process on a national level and you understand the future of America and Europe.

Molon labe

[TomD]

In my opinion you guys are trivializing what just be one of the largest economic structural imbalances in the nation, public employee pensions. For decades there has been a very cozy feedback system between Public Employee Unions and politicians that has resulted in pension obligations that simply can't be met. Little towns like this are just the leading edge with larger political entities, like California, not far behind.

Blaming this on "greedy bondholders" is ridiculous, the problem comes from the corrupt union/politician alliance, not people willing to invest some money in "munis".

[chad]

read this about FERS:

http://www.businessinsider.com/federal-employees-pension-system-deficit-2010-10

you never, ever, ever, hear this one talked about.

[osoab]

In my opinion you guys are trivializing what just be one of the largest economic structural imbalances in the nation, public employee pensions. For decades there has been a very cozy feedback system between Public Employee Unions and politicians that has resulted in pension obligations that simply can't be met. Little towns like this are just the leading edge with larger political entities, like California, not far behind.

Blaming this on "greedy bondholders" is ridiculous, the problem comes from the corrupt union/politician alliance, not people willing to invest some money in "munis".

I place the blame on the state gov for making the law that keeps bond holders fully paid.

The pensions are probably just one of the aspects of why this community is in the debt crapper.

[osoab]

read this about FERS:

http://www.businessinsider.com/federal-employees-pension-system-deficit-2010-10

you never, ever, ever, hear this one talked about.


Isn't this the same pension plan that Turbo Timmy borrowed from to keep fed gov solvent over the summer?

[chad]

i believe it is. check out this excerpt:

FERS has a trust fund. Currently there is $775b of Special Issue Treasury securities in the fund. This is equivalent to 6% of our total debt and is therefore a very big deal. FERS holds as much of our paper as do the Chinese and the Federal Reserve.

775 billion worth of useless treasury securities. this exceed the ENTIRE AMOUNT of social security paid out last year (700 billion).

[Neuro]

So Timmy borrowed a few hundred billions from FERS before the lifting of the debt ceiling, and then payed back in Treasuries after the raise of ceiling. Yes?

[chad]

So Timmy borrowed a few hundred billions from FERS before the lifting of the debt ceiling, and then payed back in Treasuries after the raise of ceiling. Yes?

that part i can't figure out. were they stealing it al along, or did timmy just start it? either way, it's 775 billion short.

[mamboni]

that part i can't figure out. were they stealing it al along, or did timmy just start it? either way, it's 775 billion short.

What's to worry about? US Treasuries are the bestest asset in the whole wide world! After all, they're backed by the full faith and credit of the United States of America. Faith! Credit! Hmmm, sounds almost religious!

[sirgonzo420]

What's to worry about? US Treasuries are the bestest asset in the whole wide world! After all, they're backed by the full faith and credit of the United States of America. Faith! Credit! Hmmm, sounds almost religious!


Don't forget "CONFIDENCE"!

It's harder to run a CON-JOB without the eponymous "confidence".

[chad]

also, don't forget that they're "special issue." this is code for non-marketable, completely worthless, shitty, piece of trash.

[Neuro]

Here is what I think happened. FERS traded junk assets for the full nominal value with The PROTESTANT, who conjured the cash from thin air, gave the cash to turbo Timmy, who later gave the Federal retirement Fund Treasuries.

Everyone is winning!...0o