Comments on: Barney Frank Threatens to Kill Muni Bond Insurance Business http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html Mon, 23 Nov 2009 09:23:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5064 Anonymous Thu, 13 Mar 2008 01:07:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5064 Rating agencies are dead, what point do they serve at this point, when all they provide are broken valuation models! Rating agencies are dead, what point do they serve at this point, when all they provide are broken valuation models!

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5062 Anonymous Wed, 12 Mar 2008 23:59:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5062 In muni land there are real issues with ratings, ins, and ins cost, no argument. While muni defaults are low they are not riskless. At this time to rebase to corp ratings and create a view of min risk while cities and counties are squeezed between rising rates and falling revenue could be the ultimate in bad timing. Letting the US gov be the backstop for everything in the economy does have a unique benefit - we only have to default to worry about then. In muni land there are real issues with ratings, ins, and ins cost, no argument. While muni defaults are low they are not riskless. At this time to rebase to corp ratings and create a view of min risk while cities and counties are squeezed between rising rates and falling revenue could be the ultimate in bad timing. Letting the US gov be the backstop for everything in the economy does have a unique benefit – we only have to default to worry about then.

]]> By: Elizabeth http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5060 Elizabeth Wed, 12 Mar 2008 21:11:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5060 Three cheers for Barney Frank. Although if he really wanted to do something smart he'd replace the tax exemption with matching funds and open up the muni market to the institutional investor base. Three cheers for Barney Frank. Although if he really wanted to do something smart he’d replace the tax exemption with matching funds and open up the muni market to the institutional investor base.

]]> By: Francois http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5059 Francois Wed, 12 Mar 2008 20:29:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5059 "Why do municipalities need access to the debt market anyway? Why don't they just SAVE?<br/><br/>SAVE??? How? By cutting expenses? Do you know what is the proportion of their budget municipalities directly control? You know how much it cost to maintain and repair sewer systems, water filtration, roads, garbage collection, maintain law and order?<br/><br/>Did you know that many cities don't even control the level of pensions they'll have to pay for their retirees, because State politicians routinely promise them more during election time? Mayor Bloomberg had to BEG Albany NOT to increase the benefits of the municipal employees of NY city during the last election cycle in NY state? How the hell can they SAVE in such a context?<br/><br/>Now, they could always save by raising YOUR taxes for years on end and stashing the profits in a rainy day fund while minimizing the services. Would that make the citizenry happy?<br/><br/>hmmm...I do not think so. “Why do municipalities need access to the debt market anyway? Why don’t they just SAVE?

SAVE??? How? By cutting expenses? Do you know what is the proportion of their budget municipalities directly control? You know how much it cost to maintain and repair sewer systems, water filtration, roads, garbage collection, maintain law and order?

Did you know that many cities don’t even control the level of pensions they’ll have to pay for their retirees, because State politicians routinely promise them more during election time? Mayor Bloomberg had to BEG Albany NOT to increase the benefits of the municipal employees of NY city during the last election cycle in NY state? How the hell can they SAVE in such a context?

Now, they could always save by raising YOUR taxes for years on end and stashing the profits in a rainy day fund while minimizing the services. Would that make the citizenry happy?

hmmm…I do not think so.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5057 Anonymous Wed, 12 Mar 2008 18:54:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5057 ...or how about you need a house or a car?<br/><br/>Why don't YOU just save for the entire amount? …or how about you need a house or a car?

Why don’t YOU just save for the entire amount?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5055 Anonymous Wed, 12 Mar 2008 17:51:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5055 Anon 1:45,<br/><br/>Okay, so your town is growing and you need new schools. Do you tell residents, wait 15 or 20 years, and we'll have the money to build them? Anon 1:45,

Okay, so your town is growing and you need new schools. Do you tell residents, wait 15 or 20 years, and we’ll have the money to build them?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5054 Anonymous Wed, 12 Mar 2008 17:45:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5054 Well if the government does get into the municipal guarantee business, every municipality will be able to spend without recourse... and we know how that's going to turn out.<br/><br/>Why do municipalities need access to the debt market anyway? Why don't they just SAVE? Well if the government does get into the municipal guarantee business, every municipality will be able to spend without recourse… and we know how that’s going to turn out.

Why do municipalities need access to the debt market anyway? Why don’t they just SAVE?

]]> By: James http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni.html#comment-5051 James Wed, 12 Mar 2008 16:37:00 +0000 http://www.nakedcapitalism.com/2008/03/barney-frank-threatens-to-kill-muni-bond-insurance-business/#comment-5051 The government should just have a lottery for everyone and thats how we can determine society. Clearly Frank doesnt understand that there are limits to this system. At some point inflation is going to be so out of control no one will be able to stop it. The government should just have a lottery for everyone and thats how we can determine society. Clearly Frank doesnt understand that there are limits to this system. At some point inflation is going to be so out of control no one will be able to stop it.

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