Lake Erie Conservative

thoughtful discussion(s) about issue(s)

… Hey , Dummies !! [#investors][#municipal debt market]…

Posted by paulfromwloh on Saturday,January 14th,2017

.. it is time to wake up ..

.. it is also time to remember that US bankruptcy law contains Chapter 9 , which affects public entities , such as cities . Stockton , Ca is currently in Chaopter proceedings . Detroit , MI is about to complete those proceedings . The stakes are getting bigger . ..

..guys and gals , investors are going to lose money . These entities cannot pay their bills . Their retirement costs are a prime reason why . Those damn costs are so sky high that the relevant entity can nev er realistically pay all of its bill . So , what are investors to do ?? …

.. [h/t — Newsmax.com/Finance]..
.. [link] to the blog post …

you have to understand that these ” Muny ” entities can indeed and will go bankrupt to escape their bills . Their regular operating bills will be affected , somewhat . It will be their retirement costs that will be forcibly pulled back into line ..

.. some states have funny laws , maybe even state constitutional amendments . Those things force payment of public employee retirement benefits , no matter what . Well , then there is a federal district court , as well as the federal bankruptcy court . Those judges can force the override of those things , thus making the bankruptcies work …

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