[Gabrial]

In my opinion this is a hugely important article. This is why Obama does not want to bail out Detroit. They want capital to flow away from those he deems “rich people” (bondholders).

It is all part of his twisted “spread the wealth around” plan.

He did the identical thing with GM. He screwed the bondholders with cents on the dollar. Many good hardworking people had their savings in GM bonds and they were screwed.

The same thing will happen here.

I would be very careful with municipal bonds right now. It could be SHTF time for these once solid investments as the liberal cities start to fall one by one.

[MichaelCorleone]

“He did the identical thing with GM. He screwed the bondholders with cents on the dollar. Many good hardworking people had their savings in GM bonds and they were screwed.”

Yeah, and nobody batted an eye, either. If Forbes, CNBC, Bloomberg, the WSJ, et. al., make a real stink back then, maybe they'd think twice before doing this.

[taildragger]

In my opinion this is a hugely important article. This is why Obama does not want to bail out Detroit. They want capital to flow away from those he deems “rich people” (bondholders). It is all part of his twisted “spread the wealth around” plan. He did the identical thing with GM. He screwed the bondholders with cents on the dollar. Many good hardworking people had their savings in GM bonds and they were screwed. The same thing will happen here. I would be very careful with municipal bonds right now. It could be SHTF time for these once solid investments as the liberal cities start to fall one by one.

Careful what you wish for...

Watch for "Obamabonds" similar to Savings Bonds backed by the "Full faith and Credit of the United States" and bought through Uncle Sugar and they are the gate keeper for Detwaa, Baltimore etc rather than a Brokerage House and a Ratings Agency. Rather than buy Muni's themselves, ( yes many in these communities with modest savings could buy a nominal amount ) they will do so because Dear-Leader says so, and they will make it easy, imagine buying these mini-munis through your Union....

Imagine if they can get a cash stream again without having to worry about their "rating" and the Accounting Equation and those pesty things called Liabilities...