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AnomaLee (29.27)

Alabama County's Debt Cut to Junk on Credit Squeeze

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February 29, 2008 – Comments (6)

" Feb. 29 (Bloomberg) -- Jefferson County, Alabama's $3.2 billion of sewer bonds were cut to junk status after the county said it may be unable to pay banks holding its floating-rate debt or make collateral payments on its interest-rate swaps."

Read More - Alabama County's Debt Cut to Junk on Credit Squeeze

 

And as my favorite headliner monk Britney Spears says in her song, "Gimme More"

 

That's what I'm thinking about the troubled times we are in....

6 Comments – Post Your Own

#1) On February 29, 2008 at 11:17 PM, AnomaLee (29.27) wrote:

....obviously because there's going to be more of this

Disclaimer: I don't want to see the U.S. economy actually falter. I am just a capitalist

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#2) On March 01, 2008 at 1:13 AM, abitare (99.46) wrote:

Since we are doing Britney: 

The Britney Spears Economy

K-Fed
The most famous ex in America, Kevin Federline is living large off his Britney-fueled image. Nightclubs reportedly pay him about $30,000 just for appearing. And he gets $35,000 a month from Britney in spousal and child-support payments.

Estimated average annual take: $1 million

The Bottom Line
Britney's peak touring and recording years are surely behind her, but the public's fascination with her chaotic life continues to mint money for those selling her image.

Estimated annual value of the Britney Spears economy: $110 million to $120 million
 

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#3) On March 01, 2008 at 9:20 AM, floridabuilder2 (99.62) wrote:

dude, did you really have to put that photo on there?  I want my recommendation back

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#4) On March 01, 2008 at 10:24 AM, rofgile (98.99) wrote:

Hah, I live in Jefferson County, AL.  We're seeing this bank credit problem spread to city governments. 

 I've never heard about these sewer bonds before - but I guess what happened is that the city of Birmingham hadn't been upkeeping the sewer system over the last years and the cost to do so became very large.  The city was finally forced to work on the sewer by a court ruling, at which point it got 4 Billion in bonds to cover the costs.  This spring there was a debt auction, and no one bought bonds because people see what is currently happening to our financial system.  The remaining bond holders got to collect at a higher interest rate due to a clause about unsold bonds.  This higher interest can't be paid by the city, and so the bonds are going to be worthless - and they got downgraded to junk.  

 I've heard that if a county declares bankrupcy, the housing values and such will fall?  Anyone know why this happens? 

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#5) On March 01, 2008 at 8:14 PM, joeykid13 wrote:

Yikes...if the Muni's are junk, then everything else is already junkier.  I thought that hideous picture was Sinead O'connor...downright frightening. Ultimately she will have a successful career pitching bi-polar meds...LOL

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#6) On August 28, 2008 at 10:38 PM, lquadland10 (< 20) wrote:

What with the banks and lending houses buying back the auction rate bonds which ties up that money then will they have to go back and beg for more money? Yes. But for now the market will go up.

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