Whoops on municipal bonds

AIG said that “several” issuers of bonds it holds have been downgraded, amid budget pressures. As of Dec. 31, the company had more than $700 million of state general-obligation bonds from California, which has the lowest Standard & Poor’s credit rating of any U.S. state. It also held more than $200 million in the bonds from Illinois.Bloomberg

Had you asked me when these bonds were issued by Fresno, I would have told you we had no intention or money to cover the billion in debt costs.  Much of this pension debt was concluded behind closed doors, fraudently, and hidden from voters.   Look here, the grand jury  investigated, found fault.  Gov Davis ordered the pension increases rescinded, and the County supervisors went ahead and ordered them through.  Likely a class action suit from Fresno taxpayers would win, and put AIG on the hook for our billion in losses. There is no way property taxpayers in Fresno should be bound to cover these costs, this was clearly fraud on the part of Fresno County sups, aided and abetted by bond insurers.

If the US Treasury wants to prosecute, go after this man, Henry Perea,  as near as I can tell he was the crook in charge.  This same man was also involved in the Ray LaHood Choo Choo scam during the last election, which resulted in the fraudulent election of Jim Costa for Congress.