Tuesday, November 23, 2010

The 'Build America' Debt Bomb

Congress has been subsidizing interest rates for local government bonds.  I like the program.  The WSJ warns that too many incompetent city managers are going to default.    Great, we have been warned and bond investors would actually look at the political idiots who are behind the bond.  If bond holders need forensic accounting to root out bozo bond deals, they have the internet and an Army of Davids.  If you are a foreigner interested in American bond deals, e mail me and I will do a research on bond managers who  root out government rot.

But, still, this BAB program is closer to a stable equilibrium than most other programs coming from the Senate.

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