Yesterday, Warren Buffet himself, posing as a white knight, but underneath looking a bit like a predator, offered to the municipal bond companies a strategy where he would buy their best holdings or reinsure them, and then leave them with the junk.....
States, which are facing a deteriorating credit situation due to the decline in affordable debt offerings, should be feeling the squeeze shortly, if not already. There is a time lag in these matters, and folks are usually in one room talking about cuts, while in another room adventurous development types are discussing adding more municipal debt----it takes a while for the picture to come together---but this is coming together quite fast----and the pains of cash and carry will arrive shortly.
It appears that the time for municipalities to focus on essential projects and not dreams has arrived.
Click on the post for the article on the Buffet offer.
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I heard that Old Man Potter is giving 50 cents on the dollar!
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