Money and Finance
- There's No Formula For Fixing Detroit, And That's A Good Thing – By Justin Fox
The news of Detroit's bankruptcy has brought countless explanations of what went wrong, some of them pretty interesting. But the main point of a bankruptcy — especially this bankruptcy, which has been looming for decades — is to get a fresh start....
- Stockton, Ca Files For Bankruptcy
In opting to become the nation's largest city to seek federal bankruptcy protection, this river port of 290,000 took a rare financial step of last resort after struggling with the economic downturn, soaring pension costs and contractual obligations....
- Whitney Whips Up Wall Street As Bear In Heels - By Alice Schroeder
Meredith Whitney has done it again, turning Wall Street against her with a contrarian call, this time on municipal bonds.The analyst’s prediction for “50 to 100 sizable defaults” of U.S. municipal bonds totaling “hundreds of billions of dollars”...
- Ex-sec Chief Levitt: Muni Market Massacre Is Coming
Found via My Investing Notebook. This is an area where Mr. Buffett has sent some warning signals as well. Former Securities and Exchange Commission chairman Arthur Levitt says there's a massacre about to happen in the municipal bond market. The muni...
- Gurufocus: Berkshire Hathaway Pulls Out Of Municipal Bond Insurance
The municipal bond insurer that Berkshire Hathaway formed in 2007 has largely pulled out of insuring new bonds issued by cities and states, Barron's reports in this week's edition. Berkshire Hathaway Assurance Co. was formed during the struggles...
Money and Finance
Detroit aftershocks will be staggering – By Meredith Whitney
She was also on CNBC yesterday discussing this topic HERE.
As jarring as the reality may be to accept, Detroit’s decision last week to declare bankruptcy should not be regarded as a one-off in the US municipal market – which is what the bond-peddlers are now telling their clients. The aftershocks of the largest municipal bankruptcy in US history will be staggering, and Detroit will set important precedents.
Municipal bankruptcies have historically been rare for a number of reasons – including the states’ determination to preserve their credit ratings, their access to cheap funding and the stigma of bankruptcy. But, these days, things are very different in the world of municipal finance.
- There's No Formula For Fixing Detroit, And That's A Good Thing – By Justin Fox
The news of Detroit's bankruptcy has brought countless explanations of what went wrong, some of them pretty interesting. But the main point of a bankruptcy — especially this bankruptcy, which has been looming for decades — is to get a fresh start....
- Stockton, Ca Files For Bankruptcy
In opting to become the nation's largest city to seek federal bankruptcy protection, this river port of 290,000 took a rare financial step of last resort after struggling with the economic downturn, soaring pension costs and contractual obligations....
- Whitney Whips Up Wall Street As Bear In Heels - By Alice Schroeder
Meredith Whitney has done it again, turning Wall Street against her with a contrarian call, this time on municipal bonds.The analyst’s prediction for “50 to 100 sizable defaults” of U.S. municipal bonds totaling “hundreds of billions of dollars”...
- Ex-sec Chief Levitt: Muni Market Massacre Is Coming
Found via My Investing Notebook. This is an area where Mr. Buffett has sent some warning signals as well. Former Securities and Exchange Commission chairman Arthur Levitt says there's a massacre about to happen in the municipal bond market. The muni...
- Gurufocus: Berkshire Hathaway Pulls Out Of Municipal Bond Insurance
The municipal bond insurer that Berkshire Hathaway formed in 2007 has largely pulled out of insuring new bonds issued by cities and states, Barron's reports in this week's edition. Berkshire Hathaway Assurance Co. was formed during the struggles...