Scranton PA citizens ask city to File for Bankruptcy (Clinton, politicians, ratings)
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If I had to guess, I'd say they could avoid bankruptcy, but lack the political will.
I think perhaps it's time to see a universal objective standard for bond ratings at the municipal and State level. As bond ratings decline, it restricts the pool of potential investors, limiting the amount of money municipalities can borrow, and maybe preventing them from getting buried.
Guessing...
If I had to guess, I'd say they could avoid bankruptcy, but lack the political will.
I think perhaps it's time to see a universal objective standard for bond ratings at the municipal and State level. As bond ratings decline, it restricts the pool of potential investors, limiting the amount of money municipalities can borrow, and maybe preventing them from getting buried.
Guessing...
Mircea
This.
Usually with municipal bankruptcies they are capable of raising taxes or cutting spending and paying it back, but don't want to. I understand why voters and politicians locally do it - it's in their interest - but there should be some broader national or state level laws either making it harder or better yet as Mircea suggests stopping them from piling up the debt in the first place.
If I had to guess, I'd say they could avoid bankruptcy, but lack the political will.
I think perhaps it's time to see a universal objective standard for bond ratings at the municipal and State level. As bond ratings decline, it restricts the pool of potential investors, limiting the amount of money municipalities can borrow, and maybe preventing them from getting buried.
Guessing...
Mircea
There used to be a relationship between risk and yield.
There used to be a relationship between risk and yield.
There still is.
But government is adjusting who does the risking and who gets the yielding - we get the risk and the friends of liberals get the profits.
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