rovo
Senior Member
Joined: Dec 18, 2010 14:20:19 GMT -5
Posts: 3,628
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Post by rovo on Jun 20, 2011 17:37:54 GMT -5
The states have lots of legitimate reasons for issuing bonds. Just the talk of a state not being able to honor its bonds will cause the interest rate to rise on future bond sales. Refuse to honor the contract and a state will most likely have great trouble selling bonds in the future.
But what the heck. You don't need that new school or road repair or bridge repair.
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Post by robbase on Jun 20, 2011 18:19:08 GMT -5
horatio is clearly riffing on the state pension thread. He raises a valid point as the conditions of the bond holders is quite similar to the state workers
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rovo
Senior Member
Joined: Dec 18, 2010 14:20:19 GMT -5
Posts: 3,628
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Post by rovo on Jun 20, 2011 18:40:28 GMT -5
horatio is clearly riffing on the state pension thread. He raises a valid point as the conditions of the bond holders is quite similar to the state workers I don't think the conditions are close at all. Screw the bond holders and it will cost you dearly. a bunch of non-productive state workers and you save money. ;D |
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Post by robbase on Jun 20, 2011 19:04:49 GMT -5
bond holders gave up monetary capital in exchange for a contract offering them something in return
state workers gave up human capital in exchange for a contract offering them something in return
Seems similar to me, I don't see why one group should be more screwed over than the other due to state budgetary issues
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Post by Savoir Faire-Demogague in NJ on Jun 20, 2011 20:13:15 GMT -5
Horatio is just re-affirming his lack of knowledge about capital and bond markets; and funding big operations such as govt budgets.
It is not state(muni) govt salaries, it is the benefits and very generous pension plans that are bankrupting such states like NY, NJ, IL and CA.
States can do without state workers, but they cannot due with the ability to raise money in the bond markets.
Heck, nearly every govt entity shut down last winter during the big snow storms. No one noticed.
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Post by Savoir Faire-Demogague in NJ on Jun 20, 2011 20:16:13 GMT -5
Well, it's like everything else, people do what they can get away with. Look at the Russians and the Czarist bonds. You could hold your breath waiting for Marx and Lenin to pay off on those, but Russia didn't see any more money from the capitalists either.
How about Greece? Their bonds are at 17%.
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Deleted
Joined: Oct 5, 2024 13:29:14 GMT -5
Posts: 0
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Post by Deleted on Jun 20, 2011 20:49:36 GMT -5
What states have broken contracts with state employees?
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