Munis Continue Collapsing in [Market-Ticker]

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User Info	Munis Continue Collapsing in forum [Market-Ticker]
Otiswild Posts: 5620 Incept: 2009-03-09 Inside you, the force is! Online	Build America Bitches!! http://en.wikipedia.org/wiki/Build_Ameri.... 2010-11-15 14:59:09 Permalink
Ugrev Posts: 143 Incept: 2010-03-08 The police state of NY	So much information to sort through when you don't have the background on this stuff, but I'm trying to open my head in a flip-top manner to cram it all in. To that note, can someone lay this out in prain engrish? 2010-11-15 15:11:22 Permalink
Genesis Posts: 130744 Incept: 2007-06-26	"Full faith and credit" = [bull***] ---------- I don't care if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2010-11-15 15:12:46 Permalink
Throxxofvron Posts: 10325 Incept: 2009-02-17 Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off	The Firemen are gonna watch them burn locked up in their fancy homes and cars and the Cops are gonna use them for target practice when they realize what has really been done with their precious Pension Funds... ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell Last modified: 2010-11-15 15:26:30 by throxxofvron 2010-11-15 15:13:17 Permalink
Detersbb Posts: 93 Incept: 2010-10-20 Banned	This is a another example of a nothing-burger. The fed will step in with a little bit more counterfeit fiat currency at buy up munis and the whole problem will be solved for a while. Maybe several years or so down the road the severity will have to be dealt with, but until then this is going to be a nothing burger. As long as the fed can counterfeit currency the only concern is inflation, and the fed has admitted that it is official policy to keep the inflation on the rise slowly, but on the rise. It hurts them because the purchasing power of currency in which they are repaid is less, but when you can counterfeit, what does that matter? It works nicely though if prices go up to create artificial need to borrow just to maintain the status quo. It would be very very interesting to debase the currency with Zimabawe like inflation and then let the credit contract dry up liquidity and leave people with huge debts of inflated dollars borrowed only to be repaid with deflated (strong/rare) dollars to really grind out a permanent bank peonage serf feudalistic society. Anyway, I see that it is only a matter of time until the fed buys up all the country with the flick of a pen and the finger jamming of a computer account. Very very soon they will buy up title and interest to all the country in this manner and then just like in the 1st depression call it in on a sovereign (federal reserve) bankruptcy scare. 2010-11-15 15:24:20 Permalink
Ugrev Posts: 143 Incept: 2010-03-08 The police state of NY	"Full faith and credit" = Prain Engrish enough for me ! :) 2010-11-15 15:26:05 Permalink
Themortgagedude Posts: 8851 Incept: 2007-12-17 saint louis	THE FED CAN'T BUY EVERYTHING! Sooner or later something is gonna tank. Maybe it's the munis. ---------- I'm already visualizing you with duct tape over your mouth. 2010-11-15 15:27:31 Permalink
Asdqwe Posts: 132 Incept: 2010-06-18 Banned	So for whatever reason the wife went in to talk to this Edward Jones investment guy today. (He's been calling to get her to meet). So what was his best advice for her if she doesn't want to "invest" in stocks? Drumroll please.......Municipal Bonds......... If that isn't gross negligence and maybe criminal intent, it's close. Luckily she's smart enough to realize the whole country is broke. 2010-11-15 15:31:38 Permalink
Corn1945 Posts: 4167 Incept: 2009-04-30	Quote: So for whatever reason the wife went in to talk to this Edward Jones investment guy today. (He's been calling to get her to meet). So what was his best advice for her if she doesn't want to "invest" in stocks? Drumroll please.......Municipal Bonds......... If that isn't gross negligence and maybe criminal intent, it's close. Luckily she's smart enough to realize the whole country is broke. It's the reach for yield. It's going to kill people (maybe literally). Keep rates at zero, mom and pop buy some rickety muni garbage, the trap door goes out and they plunge onto the spikes below. Thanks Bernank! 2010-11-15 15:33:38 Permalink
Genesis Posts: 130744 Incept: 2007-06-26	Did she shoot him? ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2010-11-15 15:36:10 Permalink
Sleepycpa Posts: 677 Incept: 2010-04-01 East of the Cascades	Yield seeking WITHOUT a discussion of commensurate risk is malpractice. Unfortunately, the dude at Edward Jones (and everywhere else) is under the impression that the Full Faith and Credit Mumbo Jumbo means no risk - and I'll bet that's what their compliance guys tell them, too. "Sell gov't debt and no one will sue you!" What a mantra. ---------- I used to believe my sig line. "Never attribute to malice that which is adequately explained by stupidity." 2010-11-15 15:46:07 Permalink
Zzt Posts: 3037 Incept: 2007-06-26 Glendale az	" The Fed is gonna do this, Congress is gonna do that, the court will just..........................." I keep reading everyone posting these comments. I dont agree. There is a NATURAL law that states, " When the money runs out , the bull**** stops. " It appears that the money has/or shortly will run out and nobody can do nothing to stop it. The only questions are ,'Exactly when?' , 'How bad will it get?' and 'Is there anything we can do to stop it?' 2010-11-15 15:49:58 Permalink
Tallystick Posts: 2230 Incept: 2009-09-20	Who owns CDS on munis? 2010-11-15 15:51:21 Permalink
Corn1945 Posts: 4167 Incept: 2009-04-30	Quote: There is a NATURAL law that states, " When the money runs out , the bull**** stops. " It appears that the money has/or shortly will run out and nobody can do nothing to stop it. The only questions are ,'Exactly when?' , 'How bad will it get?' and 'Is there anything we can do to stop it?' Exactly right. They want you to think that basic math and reality don't apply to them. 2010-11-15 15:51:29 Permalink
Eli Posts: 7200 Incept: 2007-09-10 Online	Chasing yield, it is the next housing bubble by the FED! They got you to pay three time as much as you should have for your house, told you to buy an arm loan. Now they have some really nice Californication muni bonds that are real good deals! Look at the yield. They are herding the sheep off the cliff. All so the people who have gotten raped, call pay of the people that raped them. ---------- If you want a vision of the future, imagine a boot stamping on a human face - forever. George Orwell 2010-11-15 16:02:30 Permalink
Blackswan Posts: 5564 Incept: 2007-11-06 Just outside of Philly	ASSured Guarantee has got your back or maybe not so much. ---------- Its checkmate. Everywhere its checkmate. Hugh Hendry 2010-11-15 16:09:35 Permalink
Eaglewwit Posts: 6054 Incept: 2007-11-30 SoCal Banned	If it was GS telling her to buy munis, it is criminal intent. However since it was Edward Jones it was just good old fashioned Amerikan ignorance. Remember ignorance is bliss. 2010-11-15 16:14:43 Permalink
Lowbeyond Posts: 16897 Incept: 2008-02-11 CO aka West NJ/East CA	omg i am lmao. i cannot wait til Cali Implodes. Can.Not.Wait !! ---------- Maybe it was a birdy bread-bomber from the future?! 2010-11-15 16:28:59 Permalink
Bearbull Posts: 25 Incept: 2010-04-20	Genesis, What will happen to the nominal prices of Munis if the FED purchases them? Thanks. 2010-11-15 16:33:30 Permalink
Sleepycpa Posts: 677 Incept: 2010-04-01 East of the Cascades	Quote: i cannot wait til Cali Implodes. Can.Not.Wait !! Same here, but must wait until AFTER my December trip to see my family since they ALWAYS buy the rounds of golf in the desert. After that, no worries. Let it burn. Incidentally, when I fly there in 2 weeks, I am either stuffing a cuke in the pants OR stripping and flashing my hairy back to the TSA. Haven't yet decided. ---------- I used to believe my sig line. "Never attribute to malice that which is adequately explained by stupidity." 2010-11-15 16:46:14 Permalink
Steelhead23 Posts: 2042 Incept: 2008-09-09 Portland OR	Ugrev, what those charts say is that purchasing municipal bonds in the current environment is very risky. Currently, many cities are finding that as cash-flow declines they cannot meet their obligations. Some of those obligations, like pensions, are not easily discharged and must be paid. Others, like teachers, have strong unions and political power, and federal mandates that the cities must provide free, open, and appropriate education to all. They have been cutting as much as they can or have the political will to accomplish, yet they are still going broke. The bond market is factoring in a risk of default. And the simple truth is, there is no way the Federal Reserve could purchase sufficient municipal bonds (even if it were legal to do so) to absorb a large-scale failure of U.S. municipalities. I imagine that the mayors of cities like Harrisburg, PA are wearing out the soles of their shoes and the knees of their pants dialing for dollars. Bottom line: don't expect that pothole on your street to disappear anytime soon. Don't let anyone tell you "debt doesn't matter." It sure as hell does matter - and it is eating this country alive. ---------- "Give me control of a nation's money and I care not who makes it's laws" ~~Mayer Amschel Bauer Rothschild~~ Benjamin Bernanke For-profit commercial banks are a menace and should be eradicated 2010-11-15 17:01:32 Permalink
Mdporter Posts: 560 Incept: 2008-02-26 San Jose, CA	Bond holders are going to get a big surprise when they open their monthly statements. 2010-11-15 17:10:03 Permalink
Kamath Posts: 1539 Incept: 2009-04-04 Sweden	Buy the dip! ---------- "Yep - and that ***er didn't want to light either. I had to soak it in gasoline for a full day before that rat bastard thing would combust." - Karl Denninger ""We could not be more ill served if we had some South American tribal witch doctor shaking monkey bones at us. " - Infidel 2010-11-15 17:18:07 Permalink*
Cheapbastud Posts: 908 Incept: 2007-10-09 Rainbow Star. Pay no attention to the green star	Right now, the GoldmanSachs is buying all of the munis and waiting for the BenBernank to announce a Federal Reserve Muni Purchase Program to begin in 2 months time at which point the GoldmanSachs will sell the munis it has purchased to the BenBernank for historic high prices. ---------- limit(r-->m) k(r) = b 2010-11-15 17:20:58 Permalink

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