Let the Games Begin

Last month, I wrote “One Man’s Opinion,” a list of events that I thought would occur in 2010. Number two on that list is as follows: Several municipalities could declare bankruptcy, and several states, led by California and New York, may be in technical default. I believe expenses will continue to outpace tax revenues, and April 15th will be D-day. Havoc could be the word for the municipal bond market.

This morning, Bloomberg announced that the state capital of Pennsylvania (Harrisburg), is entertaining the decision to declare bankruptcy, their last resort. This would make bondholders part of the creditor group, and we all know what happened to the GM and Chrysler bondholder creditor group. Good luck. I knew this was coming, but thought later, rather than sooner.

Let the games (begin) continue.

Till next time,

Bill


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