Even Kevin Bacon ain't gonna be able to get the aftermath of this under control....
Posted on 02/20/2011 1:27:48 PM PST by The Magical Mischief Tour
The state of Illinois hopes to issue $3.7 billion in bonds, next week. The funds will be used to pay this year's pension payments.
Writes NYT, which is starting to get the picture of the serious problems in the muni market:
(Excerpt) Read more at economicpolicyjournal.com ...
People are crazy enough to buy these bonds?
Once you start borrowing to pay your operating costs - and current payments to pension beneficiaries are operating costs, not capital costs - you are sunk.
And, what State did our infamous pResident come from? Suppose he’ll bail them out?
What sane person would purchase these bonds?How high will the interest rate have to be to attract buyers?
That’s nothing! The Idiot Governor if Illinois, the disHonorable Patrick J. Quinn, wants to borrow ANOTHER $4.7 BILLION to pay off debts owed to Illinois cities, towns, and schools!
I kid you not! Here’s proof:
http://abclocal.go.com/wls/story?section=news/politics&id=7328151
Well why not, he hasn’t got Bernanke’s printing press but he has all the same attitudes. At least the Republican minority has been able to keep this from happening so far.
But just wait. Just like with T-bills, all it’s going to take to bring the house of cards down is two words:
Failed. Auction.
Even Kevin Bacon ain't gonna be able to get the aftermath of this under control....
Seems like they need a governor like Wisconsin has.
another liberal state about to blow up
It is over for IL and maybe America. No one will buy those bonds. Illinois is not a huge coal state.
They have enough coal that if they made coal diesel at about $35 a barrel - they would have more oil than Saudi Arabia. $3.7 billion would be chicken feed.
One phone call to a company like Sasol and they could get started but the union thugs and Saudi-financed environmentalists would never let it happen.
lol...the nation that lost its mind..what bright bulb agreed to this..oops! nevermind.
I keep hearing about these six figure pensions that public people expect to draw.
And many will, if not most.
Heck I DON’T MAKE SIX FIGURES DOING MY REGULAR JOB!!!
The icing on the cake will be when Carol Mosely-Braun becomes Mayor of Chicago.
Money managers think you're crazy not to. Team Obama has ways of making a compelling case to somebody whose entire reason for living is to generate a basis point over treasuries.
The federal government is.
I don’t think anyone can save Illinois now. Chicago is too corrupt and too powerful.
If the Fed doesn’t buy these bonds, it is going to scare states on what kind of junk bond rates they will bring.
Once government is thought of as the proprietor of wealth we all are sunk.
We are rearranging deck chairs presently.
Bernake to the rescue. They will find a way.
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