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The Jefferson County, Alabama County Commission votes 4-1 to file for Chapter 9 bankruptcy...

The Jefferson County, Alabama County Commission votes 4-1 to file for Chapter 9 bankruptcy protection. Coming at the end of a back and forth process that's been going on as long as Greece, it would be the largest municipal filing in history, stemming from billions in debt taken on for the Taj Mahal of sewer treatment plants.
Comments (21)
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    That's the great work of GS and JPM finally coming home to roost for Alabama. See how great those fancy derivatives were that made GS and JPM so much in bonuses and commissions.
    9 Nov 2011, 05:13 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    Does this mean that if my septic field goes bad I can claim bankruptcy and get an indefinite loan from the FED at 0.01% to get it fixed and stop paying my kids allowance?
    9 Nov 2011, 05:14 PM Reply Like
  • Brandon Gibbs
    , contributor
    Comments (225) | Send Message
     
    no it means you should pass on the gold plated toilet bowl and stick to being frugal
    9 Nov 2011, 05:24 PM Reply Like
  • Tack
    , contributor
    Comments (12701) | Send Message
     
    Yes, yes, let's blame JPM for the municipality borrowing money it can't pay back for some absurd political pork-barrel project. We all know it's the creditors' fault every time somebody irresponsibly borrows money. Debtors are never, ever to blame. How would that look, blaming the poor "victims."

     

    This has become some kind of sickness in this country and must make all the tort lawyers in America happy, as they've been offloading responsibility and preaching the blame game for decades. Now, everybody's decided that's a great idea. Even worse, people think it's normal.

     

    P.S. By the way, JPM was the largest holder of those bonds, so how would they benefit from the project going under?
    9 Nov 2011, 05:24 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    "We all know it's the creditors' fault every time somebody irresponsibly borrows money."

     

    But Tack, this was a socially responsible project and the borrowers had good intentions. Now a few of their campaign contributors may have gotten a few lucrative contracts for work on the project but they do that in Chicago all the time and look at the great politicians it produces.:-(
    9 Nov 2011, 06:51 PM Reply Like
  • PotentDagger
    , contributor
    Comments (12) | Send Message
     
    I live in Alabama and I own some of that Sewer bond. The deal was as crooked as they come, and given how the corruption occurred I can not see how someone at JPM did not at least suspect what was going on, if not actually look the other way.
    For those interested, here is a time line from the start fo this fiasco, right up to todays vote for Chapter nine.

     

    http://bit.ly/s38ca7
    9 Nov 2011, 08:18 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    Tack said: "P.S. By the way, JPM was the largest holder of those bonds, so how would they benefit from the project going under? "

     

    Hmm...let's see...start by asking how they benefited from WaMu.

     

    Then...how many billions (trillions?) did they get from the FED (taxpayers) at 0.01%?

     

    Then...what kind of salary and bonuses did and will Jami "Cromwell" Dimon get regardless of the failures of his or other banks?

     

    Seems like a pretty sweet deal to me; the bankruptcy filing will quickly be back-filled by Ben and Timmah (taxpayers) at no cost to JPMorgue.
    10 Nov 2011, 02:16 PM Reply Like
  • Tack
    , contributor
    Comments (12701) | Send Message
     
    ebw:

     

    Of course, JPM, and others, paid back TARP, plus handsome interest. Perhaps, you'd suggest rebating that back to JPM, so they'd be even.
    10 Nov 2011, 02:35 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    ebw

     

    Do you just make this stuff up randomly or is this really how your mind works?
    10 Nov 2011, 03:08 PM Reply Like
  • warrenrial
    , contributor
    Comments (558) | Send Message
     
    Their all in the sewer.
    9 Nov 2011, 05:52 PM Reply Like
  • PotentDagger
    , contributor
    Comments (12) | Send Message
     
    I got 10K in that "sewer bond", it was supposed to mature in I think Aug of next year......Thank God it is insured, but I am guessing it will be a long wait to get paid out. There is a long and very sorted story behind this bond deal, and folks did manage to go to prison over it. SO I guess between waiting for the insurance to pay off the bond holders, and knowing that some jerks are wearing orange jump-suits behind it, life does still manage to have its little compensations.
    9 Nov 2011, 07:56 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Another great example of government making well informed decisions for the taxpayer. Our best and brightest certainly are not in government.
    9 Nov 2011, 09:38 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    TVP,
    Guess they finally learned something from the best and brightest in the private sector such as Enron, Worldcom, Countrywide, Wamu, and countless others including Donald Trump.
    9 Nov 2011, 10:04 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    UI

     

    Comparison is that government rides on the back of their citizens who often have litte say in their stupidity and cannot get off the train. Investors in private enterprise make the decison to get in and can get out as they please. Good metaphor for freedom.

     

    Yearn to be free or you will find one day you have lost more than you ever imagined.
    10 Nov 2011, 12:51 AM Reply Like
  • jschroe36
    , contributor
    Comments (66) | Send Message
     
    Plenty more municipal and state bankruptcies coming.
    10 Nov 2011, 12:25 AM Reply Like
  • wysiwyfind
    , contributor
    Comments (22) | Send Message
     
    Meredith Whitney: I think she had it right about municipalities...more to come IMHO.
    10 Nov 2011, 09:30 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Yes and she was roundly trashed by all kinds of people. That was really denial of the problem just like the subprime denial that went on early in the 2008 meltdown.
    10 Nov 2011, 03:09 PM Reply Like
  • Tack
    , contributor
    Comments (12701) | Send Message
     
    TVP:

     

    She deserved to be trashed, as municipal defaults are running well below averages, and all she did was stir up some media-hyped hysteria. Although, I suppose I should thank her, as municipal-bond funds have significantly outperformed ever since she sent them off a cliff. They were a great buy last fall and winter.
    10 Nov 2011, 03:22 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Simple question:

     

    If the American taxpayer cannot pay for the Federal deficit how are they going to pay for municipal debt?
    10 Nov 2011, 10:25 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4008) | Send Message
     
    When it comes to politicians trucking with bankers, the nod usually goes to the latter because the locals tend to be dumb crooks and the bankers are usually smarter. This holds in most localities with the exception of a few pockets in Louisiana where they can steal your radio and leave the music playing.
    10 Nov 2011, 10:16 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Geof

     

    Actually I think it is more tied to the bankers have committees and lawyers that review these loans so they have more resources to make the right decision. It is not 1 on 1 more like 1 on 10 and the bankers also have the experience factor working for them. Add on that probably better educated and really have a sense of responsibility to their company unlike politicians who are in it for themselves. And finally government bodies not wanting to pay for good legal and financial advice and there you go.
    10 Nov 2011, 03:12 PM Reply Like
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