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Municipal Defaults Loom Large on the Horizon

As cities across the nation face increasing budget strains, the vocal group of experts warning about municipal defaults has gained a powerful member: Jamie Dimon.

JPMorgan CEO said he expects to see more U.S. municipalities declare bankruptcy, Bloomberg News reports. His concerns echo those of Meredith Whitney, the analyst who has said the next major financial crisis will come from a wave of local government defaults, and those of famed investor Warren Buffett, who has called the municipal debt situation a "terrible problem."

"If you are an investor in municipals you should be very, very careful," Dimon said, according to Bloomberg.

http://www.huffingtonpost.com/2011/01/12/municipal-debt_n_80...



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"I see a dark sail on the horizon,

set under a black cloud that hides the sun."

http://www.youtube.com/watch?v=DIaPIy4Mddg

"Liberty, when it begins to take root, is a plant of rapid growth." - George Washington

good find Michael

Thanks for posting.

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sometimes LL can suck & sometimes LL rocks!
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Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Isn't that what JP Morgan was betting on?

"Offered by banks like JP Morgan, Bank of America, and Citigroup, the so-called municipal credit default swaps can be used by investors to bet that insurance contracts protecting holders of municipal bonds will default."

http://www.huffingtonpost.com/2010/04/27/banks-bet-against-u...

Yes, see this

http://www.allbusiness.com/personal-finance/740233.html

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Once bankrupt, they have to sell off the lien rights

It always goes this way.

Varies from state to state, Tea Party knows this well.
We definitely don't want them to bring in more debt or federal programs at the Pentagon.

What Happens When a City Goes Bankrupt?

As a result, modern Chapter 9 fillings don't work quite like other bankruptcies. When a city goes bankrupt, the judge's primary job is to make sure that it's eligible to file and to approve its plan for paying off the debt. But federal bankruptcy judges have less control over cities than they do over other kinds of debtors. In particular, the judge can't order a city to liquidate its assets to pay off creditors. (As one Chapter 9 lawyer said when Miami faced bankruptcy in 1996, "They can't come pick up the fire engine.") In addition, the city can borrow money without the oversight of the judge or her appointed trustee. (In conventional bankruptcies, a debtor would need approval from the judge for certain financial transactions.)

http://www.slate.com/id/2128062/

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what happens when a city or

what happens when a city or town defaults? how does this affect the people and the town or city?

lol

why do you have a link to that sinner's site posted? lol

Anyway, I do not know what will happen but I would support liquidating the debt and starting anew.

donvino

It was a link to the site

It was a link to the site that exposes Jack Conway..but since Rand won, they just linked it RPF.

Orange County, Cal. did it in the 90s. Here is the story

http://www.allbusiness.com/personal-finance/740233.html

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