that many are sick and tired of this type of news. However, as I had previously noted with related writes at FA; the fact remains for so much that has and will continue to affect our investments and the potential profits are the events that remain in the "reality bites" category.
I personally find no value with hiding away from the real world; and I presented the Harrisburg situation about 18 months ago in a reply to someone's thoughts about specific muni bond issues.
"Reality bites", and it must be faced head first !
http://www.businessweek.com/news/2011-10-12/harrisburg-pennsylvania-files-for-bankruptcy-lawyer-says.htmlRegards,
Catch
Comments
Not so much related to rumors for Harrisburg's problems. Reviewing the problem areas from a few years ago IMHO indicated that there would not be another path available.........either a state operational takeover or the chapter 9. I recall that the numbers could never add to a positve value; let alone a hugh negative money number that could not be corrected. I will not continue to follow the story and/or the ramifications for all involved; as I have too many areas to study. Needless to say; that many states and muni gov'ts are and will continue to be in deep do-do; and as anticipated, the citizens should continue to expect further reductions in services.
As to Mr. Perry, well; with political matters a rumor has much fertile areas from which to grow.
Would you not prefer to keep him in Texas to preserve the economy?
OK, back to work outside before the rains come and halt productive efforts.
Regards,
Catch
http://www.benzinga.com/markets/bonds/11/10/1981696/meredith-whitney-shouldnt-pop-the-cork-just-yet
The NYTimes article goes on to quote the opinion of a managing director of "an independent consulting firm" that Harrisburg's defaults were up to that point due to the malfunctioning incinerator, but its later problem was more fundamental (reinforcing Investor's point).
Regarding Whitney - Investor's article suggests that Whitney only gets to tally Harrisburg if bankruptcy protection is granted. That's wrong. Whitney, as the lead sentence points out, predicted defaults, not bankruptcies. She would have been an even bigger fool to have predicted bankruptcies, since many if not most states, don't allow municipalities to go bankrupt. And as far as defaults go, Harrisburg has been in default apparently for years, going up in smoke because its trash didn't.
http://blogs.smartmoney.com/advice/2011/10/12/muni-bonds-will-new-worries-spread/?link=SM_hp_featStory