Posts Tagged ‘bond’

More Downgrades To Come

If governments are allowed to break pension contracts because they don’t feel like paying the costs, then the bond holders are in the cross hairs too.

Richard – comment to Another Downgrade

According to documents filed this week by New Jersey defending the state’s refusal to pay a large portion of an already understated pension contribution, defaulting on bondholders was considered.  Page 4 of that brief makes that fact clear:

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SEC Cracking Down on Municipal Bond Issuers/Liars?

For years now the only pieces of fiction I have been reading are either by Christopher Buckley or the auditors for Union County.  Whether it’s fudging OPEB disclosures or failing to mention raiding the Open Space Trust Fund (a $10 million annual tax that sunsets in 2020) to pay operating expenses this deceptive reporting (I mean by the auditors not Buckley) have kept investors, who heretofore have accepted as gospel that municipalities would somehow always pay back their bonds, in the dark and eventually out of luck and money.

Then came Detroit with their deceptive pension numbers and the SEC started worrying.

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