Jefferson County, Ala., disclosed what is believed to be the county's first missed payment to owners of its sewer warrants after defaulting on $46 million worth of sewer bonds.
The Bond Buyer won't let you copy the article but you can go here to read it for free.
*What exactly does this mean for counties and states across the US? Last year Jefferson County started to have problems with their sewer bonds and everyday I was reading that the possibilty of bankruptcy was not so remote until their creditors restructured their interest payments. (They say that states can't go bankrupt, yeah right!) A year later and we are back where they started only this time is for real. Syncora Insurance (formerly XL) has been barred from making any payments by the state of NY due to capital problems so jefferson's creditors are SOL for now.
This is a nightmare people. Imagine the cascading waterfall of municipalities all across America if, or I should say when, they all start to collapse under their own weightloss from lack of revenue due to JOB LOSS and a credit crisis of magnitudiness proportions. If you build it they will come has just gained new meaning. With a bulldozer....
California's has been issuing IOU's that won't be accepted at banks after Friday. Hello....Orange County has gone bankrupt not once but twice.
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