Posted by ibot | Posted in bonds , California Municipal Bonds | Posted on 5:17 AM
California Municipal Bonds States continue to hope, pray, and seek, putting off until tomorrow, fiscal responsibility that takes years if not decades ago.
Please consider some typical examples of n defaults for states like California Employment favors Bonds> <
* Illinois than $ 5 billion of letters go unpaid.
Minnesota business school is delaying refunds and duty free sales, and delayed medical care and the creation of a bank line of $ 600 million credit.
*
New Jersey intends to refinance about $ 250 million in bonds in general obligation to promote the $ 202,500,000 of the costs of debt service in future fiscal years.
*
Illinois, is selling $ 900 million of bonds for capital projects this week.
*
22 states put staff on temporary license.
*
Arizona sold the House and Senate buildings.
*
California solicited bids for 11 of its office complexes.
*
Delaware $ 29,000 saved by eliminating the flowers in the state psychiatric hospital and health department.
*
California Gov. Arnold Schwarzenegger, facing a budget shortfall of $ 19 billion for the year that began this month, is trying to force 200,000 workers in state minimum wages temporarily.
*
All these measures Half-Assed assume the economy will improve later this year. Rather than suggest that States should expect a second half housing and durable goods plunge.
For now, the municipal bond market seems placated with non run out of money, simply because they have stopped paying bills and / or temporary accelerated tax collection.
I do not know how long it lasts, but the second half is likely to be quite revealing.
To be sure, states are making some cuts necessary. However, the game exceeds fiscal austerity measures required by a mile.
California alone is $ 19 billion in the hole and that is after California enacted a temporary one percentage point increase in the rate of sales tax (expected to generate about 4.5 billion U.S. dollars in fiscal year 2010) and then accelerated tax collection.
Also after patching a hole of 24 billion U.S. dollars earlier this year.
Literally no state is remotely prepared for the tsunami in the second half coming down the pike.
Mike "Mish" Shedlock
Click here to scroll through the list of my recent entry Mike "Mish" Shedlock is a representative of a registered investment adviser for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
http://www.sitkapacific.com/account_management.html Visit to learn more about wealth management and capital preservation strategies of Sitka Pacific.
Please consider some typical examples of n defaults for states like California Employment favors Bonds> <
* Illinois than $ 5 billion of letters go unpaid.
Minnesota business school is delaying refunds and duty free sales, and delayed medical care and the creation of a bank line of $ 600 million credit.
*
New Jersey intends to refinance about $ 250 million in bonds in general obligation to promote the $ 202,500,000 of the costs of debt service in future fiscal years.
*
Illinois, is selling $ 900 million of bonds for capital projects this week.
*
22 states put staff on temporary license.
*
Arizona sold the House and Senate buildings.
*
California solicited bids for 11 of its office complexes.
*
Delaware $ 29,000 saved by eliminating the flowers in the state psychiatric hospital and health department.
*
California Gov. Arnold Schwarzenegger, facing a budget shortfall of $ 19 billion for the year that began this month, is trying to force 200,000 workers in state minimum wages temporarily.
*
All these measures Half-Assed assume the economy will improve later this year. Rather than suggest that States should expect a second half housing and durable goods plunge.
For now, the municipal bond market seems placated with non run out of money, simply because they have stopped paying bills and / or temporary accelerated tax collection.
I do not know how long it lasts, but the second half is likely to be quite revealing.
To be sure, states are making some cuts necessary. However, the game exceeds fiscal austerity measures required by a mile.
California alone is $ 19 billion in the hole and that is after California enacted a temporary one percentage point increase in the rate of sales tax (expected to generate about 4.5 billion U.S. dollars in fiscal year 2010) and then accelerated tax collection.
Also after patching a hole of 24 billion U.S. dollars earlier this year.
Literally no state is remotely prepared for the tsunami in the second half coming down the pike.
Mike "Mish" Shedlock
Click here to scroll through the list of my recent entry Mike "Mish" Shedlock is a representative of a registered investment adviser for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
http://www.sitkapacific.com/account_management.html Visit to learn more about wealth management and capital preservation strategies of Sitka Pacific.
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