US municipal bond crisis

There is indeed one. Largely caused (in my highly partial opinion of course) by the way in which the public sector unions have managed to ransack the public finances for their pensions.

Opinions do differ of course:

The point is that Bob Diamond is wrong to say that the time for recrimination on banks is over. This failure is another consequence of banking recklessness, and may require yet more bail outs. We’re a long way from being out of the woods yet.

Yup, that\’s right. It\’s all the bankers fault.

I\’d love, seriously, I\’d just love it if someone could connect those dots for me. I\’m entirely at sea…..

5 thoughts on “US municipal bond crisis”

  1. One obvious problem, obvious in may industries in addition to banking, is corporate governance laws that enable the top employees – CEO and chief minions – to loot the shareholders.

    In my decades of reading the newspapers, I don’t think I’ve ever seen any intelligent comment on this problem by The Left. Jesus, they are useless bloody twats.

  2. Look, it’s easy.

    Municipal Authority tax revenue falls on account of recession.

    Banks get leery of lending to MAs as the risk of default grows.

    But banks wouldn’t be leery if they didn’t eat babies and if Bob Diamond made only what the People’s Tribunes thought he ought to be paid.

    I think.

  3. It’s pretty simple, Tim: bankers are rich and we’re not, therefore we hate them. Classic envy masquerading as “equality” and “justice” argument.

  4. I don’t see his side of the argument either! Was tempted to put a comment on his blog but couldn’t be bothered.

  5. I love the arrogance:

    ‘I’ve been saying US municipal bonds may be the harbinger of the next banking crisis since the middle of last year.

    I note the FT is on the theme today…’

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