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REPORT COPYRIGHT VIOLATION IN REPLY
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Message Subject
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MOODY’S WARNS OF MASS CALIFORNIA MUNICIPAL BANKRUPTCIES....
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Poster Handle
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Anonymous Coward |
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Post Content
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Some cities going bankrupt now is actually a good thing. Next year they are back and then can take on new debt.
Quoting: Anonymous Coward 22223638 It's not that easy. In such an environment it would be very difficult to borrow money. Also, the bondholders will lose an incredible amount of wealth, most of the money raised for gov. debt actually comes from individuals, retirement funds and investment funds, and if they lose big they will not have money to invest in future debt..... So true. So what happens when retirement funds are invested in these bonds that are not repaid? Taxpayers are on the hook for the state retirement benefits. No future debt, but taxes go up! Big time. And when the vast majority have not the money to pay their taxes? What then? Go ahead and pay off your house so you have nothing to bargain with at the Assessors office. If the bank owns your house they will think twice about raising taxes, if you own it outright shut up and pay up. Afterall you can't move anyway because either your under water or over leveraged. Leave the house on the banks balance sheet !
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