PeakOil is You
THE Bond Thread (merged)
Re: Bond Market Goes Kabooooooooooooom!
by peaker_2005 » Sat 19 Jan 2008, 02:44:23
$this->bbcode_second_pass_quote('Denny', '')$this->bbcode_second_pass_quote('Eli', 'T')his is where it gets real bad. Cities will go broke and will have to rely on local taxes for all projects. Oh there is a storm and the power is knocked out. Too bad sit in the dark there is no money to turn the lights back on.
How have we come to this point? Even in the great depression, cities managed to scrimp by and get essential tasks done, even survive natural disasters. This whole financial fiasco is just a paper based problem - its not a real problem of assets and resources. Maybe we are all to hung up on financing and debt schemes. Where there is a will there is a way.I recall the story of my uncle's father who helped build Maple Leaf Gardens in 1931 in Toronto. He only got a half wage as the owner was impacted by the financial calamity. But, they got it built in eight months, actually record time. The tradesmen received shares in the Gardens which later turned them into wealthy men, if they were prudent enough to not to sell them. To say nothing of the pride element of having one's hands shaping a part of that Carleton Street shrine to hockey. I'm sure in some city like St. Louis there will be electricians who will donate their time if it comes to that after some tornado so a widow can turn her lights on. And, in turn that widow may bake a pie for the workers. That is the real America.
The problem is that people have been sowing discord and hate while they've also been greedy. You reap what you sow. Even if not immediately. The world is consumed with itself, forgetting how to love. Certainly, if you can learn to hate, you can also learn to love, but it takes time.
And time is something in short supply... THAT is the true tragedy. Money is king and captor of the world. And shortly, it will soon prove to have been a grand deception.
"Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so." - Douglas Adams
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peaker_2005 - Tar Sands
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Re: Bond Market Goes Kabooooooooooooom!
by Twilight » Sat 19 Jan 2008, 02:53:32
$this->bbcode_second_pass_quote('Denny', 'I')'m sure in some city like St. Louis there will be electricians who will donate their time if it comes to that after some tornado so a widow can turn her lights on. And, in turn that widow may bake a pie for the workers. That is the real America.
Pie or no pie, they won't even stop their van without the permits. It will be the last pie they ever eat, assuming they have the presence of mind to ask for payment up front. Critical national infrastructure does not survive on goodwill. You either have a central authority, or you have nothing at all in short order. By bet is it survives, but there is no compromise between the two extremes. People have better ways of making a living which let them see tomorrow.
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Re: Bond Market Goes Kabooooooooooooom!
by Zardoz » Sat 19 Jan 2008, 03:24:12
$this->bbcode_second_pass_quote('Eli', 'C')ities will go broke and will have to rely on local taxes for all projects. Oh there is a storm and the power is knocked out. Too bad sit in the dark there is no money to turn the lights back on.
Warren Buffet to the rescue?? Ambac fallout could hit municipal bonds
$this->bbcode_second_pass_quote('', 'T')he failures of some bond insurers could open the door for those who do not get downgraded, as municipalities look to minimize borrowing costs. "Survivors will get long-term benefit from the near-term volatility," said Steve Stelmach, an analyst at Friedman, Billings, Ramsey & Co.
Warren Buffett's Berkshire Hathaway (BRK.A) could be one company that gets a boost. Buffett launched a new bond insurance business in December that has a "AAA" credit rating and a solid balance sheet. Buffett's new company also has the benefit of having no questionable loans on its books.
Boy, ol' Warren saw this coming, didn't he? Is anybody surprised?
"Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
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