Any interest you make is stolen directly from the pockets of your neighbors and their children.
Don't you *dare*.
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 09/13/2010 4:41:45 PM PDT by Broker
A bond is a contract to repay borrowed money within a specified term and with fixed-interval interest payments. Build America Bonds (BABs) were created under the American Recovery and Reinvestment Act, signed into law by President Obama in February 2009, with the intention of providing a low cost means of borrowing for state, municipality and county agencies. Build America Bonds are taxable fixed-income securities that help these agencies finance capital expenditures through subsidized borrowing. (snip )
The Pros • 35% subsidy/tax credit • Interest rates comparable to corporate bonds - this means the bonds are typically high-yielding • Allow municipalities to raise money for capital expenditures • Provide bond-holders with a long-term (30-year) stable source of income • Create new jobs as capital projects are funded • $106 billion in Build America Bonds has been issued, constituting approximately 21% of the municipal bond market (as of May 31, 2010). The Cons • Wall Street has been criticized for charging higher-than-average fees and commissions for BABs at the start of the program, thereby increasing borrowing costs. • The future of the BABs program is uncertain; it may end December 31, 2010. • Subsidies may not be available to state and local governments owing money to the federal government for such programs as Medicaid. • Taxpayers foot the bill for the interest subsidies. There is some argument that taxpayers are essentially bailing out those states with the largest debt and BABs deals (such as California and New York).
(Excerpt) Read more at financialedge.investopedia.com ...
What happens to bondholders in a Chapter 9?
Heres a clue for the academics.
If you build a gated community that makes it hard for people to get into you live....It makes it hard for you to get out.
Any interest you make is stolen directly from the pockets of your neighbors and their children.
Don't you *dare*.
There is now a boat load of BABs surging into a blind market .. Speechless.
No....
Investors took the bump in rates and put them in their IRAs.
Now Hussein wants to tax IRA income annually. Afterall, if someone is rich enough to have a retirement account, he is rich enough to pay taxes on it.
Next up, since any income not taxed is a government subsidy, if no tax on total IRA income, then a requirement that IRAs must have an amount of US Treasuries to match anything not taxed in them.
yitbos
One concept roils in by brain; vacant debt.
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