Use access key #2 to skip to page content.

kirkydu (93.67)

Was Whitney right afterall? Harrisburg goes bankrupt.

Recs

3

October 12, 2011 – Comments (3)

http://www.pennlive.com/midstate/index.ssf/2011/10/harrisburg_city_council_to_fil.html

I did see the CNBC interview and the convoluted attitude once again put out there that the bond holders were more important than the citizens and employees of the debtor- Harrisburg in this case.  There is no more important side here, just like anywhere else.  There is a balance that needs to be met.  People can not be made into serfs anymore than the integrity of the financial system should be compromised.  Investors assume risk.  From time to time they will get a haircut.  That's ok.  What's not ok is wiping out a city, or state, or nation.  Find a balance.

3 Comments – Post Your Own

#1) On October 12, 2011 at 10:50 AM, davejh23 (< 20) wrote:

"Investors assume risk.  From time to time they will get a haircut.  That's ok.  What's not ok is wiping out a city, or state, or nation.  Find a balance."

How would bankruptcy/default "wipe out" a city, state, or nation?

Report this comment
#2) On October 12, 2011 at 11:46 AM, chk999 (99.97) wrote:

Investors have long memories. Places that default can find it hard to sell bonds for a long time to come. The chance I would buy Harrisburg bonds now is zero. And probably for the next twenty years or so. Places will either learn how to live within their income, or find out what it's like to not be able to raise money.

Report this comment
#3) On October 15, 2011 at 9:18 AM, kirkydu (93.67) wrote:

you're missing the point.  That loan should never have been made, those loaning the money should not expect tens of thousands of people who had no role in the deal to pick up the tab.  The general obs will be fine btw. 

Report this comment

Featured Broker Partners


Advertisement