The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label municipal bonds. Show all posts
Showing posts with label municipal bonds. Show all posts

Wednesday, October 2, 2013

Crowdfunding and Kickstarter replacing Municipal bonds as means for cities to get money for projects

Since 2008, the Municipal Bond markets have been decimated by a combination of lower returns and the potential for cities to go bankrupt.  In fact, in June of this year, over $13.5 billion wasremoved from the Muni market, making this decline the second largest on record.
So in an attempt to get necessary cash to pay for both needed and discretionary projects, municipalities are looking at voluntary donations through online places such as Crowdfunding and Kickstarter.  In Central Falls, RI for example, the city placed a fundraising project on Crowdfunding to try to pay for five no garbage cans in a park that is quickly becoming inundated with trash and debris.
 
Read more of this article here...

Friday, March 23, 2012

CIties defaults could accelerate as Municipal Bonds stand on edge of collapse

On March 22nd, the End of the American Dream blog came out with 10 indicators that cities around the country could begin defaulting in greater numbers as both the pension funds and municipal bonds outstanding could be on the verge of a collapse.



Chart courtesy of the Wall Street Journal

#1 Moody's has downgraded Detroit's debt again.
#2 The city of Indianapolis is facing an unprecedented 75 million dollar budget deficit in 2012. City officials are warning that there may soon not be enough money to keep the streetlights on.

#3 Suffolk County in New York has declared a "fiscal emergency" after discovering that it is projected to take on a total of more than 500 million dollars of additional debt by the end of 2013.

#4 The city of Trenton, New Jersey is so broke that it has put off buying more toilet paper for city buildings. At last report, there were a total of 15 rolls remaining and after that those that use city restrooms will be on their own.

#5 Some cities are slashing expenses dramatically in an attempt to stay afloat.

#6 In New York, state officials are deeply concerned that city and local governments are paying their pension obligations by borrowing from the state pension fund. This is essentially like making your minimum monthly payment on a credit card by borrowing more money on that same credit card....

#7 Pension problems are catching up with a lot of cities all over the nation. For example, CBS News reported recently that the city of Central Falls, Rh0de Island has been forced to declare bankruptcy because of pension woes....

#8 Last November, Jefferson County, Alabama filed for the largest municipal bankruptcy in U.S. history. At the time, they had accumulated a total of approximately 4.2 billion dollars of debt.

#9 Several other U.S. large cities have defaulted on their debts in early 2012

#10 In all, there have been 21 municipal defaults so far in 2012. The grand total of those defaults comes to 978 million dollars.


On top this these indicators listed, interest rates appear ready to move up outside the Fed's influence to control the lending rates.  Rates crossed 4% for the first time in several months in March, and the rate of foreclosures is now increasing after legal and legislative changes were made to the contract ownership barriers between banks and homeowners.

Lower tax receipts, coupled with rising inflation and the inability of cities to borrow money through bond auctions will accelaerate the collapse of many municipalities, and lead to greater unrest as city pension funds continue to shrink for retirees.