real-time news and commentary for investors
Friday, Sep 27
Administration cash to Detroit won't alter debt situation
- Detroit has $18.5B in debt obligations and none of the $300M will go in that direction. Instead the money will be used for transportation and demolishing of buildings. "There is nothing we can do to help on the bankruptcy; there is no bailout," says the WH's Gene Sperling. "(It's) like dumping a cup full of water in Lake Michigan," writes Yahoo's Jeff Mackeon.
- Chicago next? It's pension liabilities are 678% of revenue, dwarfing Detroit's ratio.
- Meanwhile, the bond insurers (MBI, AGO, AMBC) have fallen and can't get up as they mull over not just Detroit, but maybe the far larger issue of Puerto Rico.
- Muni ETFs: MUB, SUB, MUNI, PVI, PZA, SHM, TFI, VRD, HYD, ITM, MLN, PRB, SMB, GMMB, SMMU, RVNU, NY.