To quote a common phrase, it's all about the debt, stupid. This is the message of the national municipal bond market. What happens when there's an auction and there's no bids? Don't laugh, it's already beginning to happen. The size of the most recent bond auction in New Jersey had to be reduced for lack of interest. This suggests that Capital is demanding higher interest rates (lower prices) to balance the reward to risk equation. Unfortunately, higher borrowing costs are not an option for cash-trapped governments; they can't afford to service their existing debt.
There are no easy solutions that won't eventually lead to increased social polarization. Patience is needed most at a time when it's running thin for most. The debt problem cannot be solved with a stroke of pen.
Headline: Wis. Assembly passes bill taking away union rights
Republicans in the Wisconsin Assembly took the first significant action on their plan to strip collective bargaining rights from most public workers, abruptly passing the measure early Friday morning before sleep-deprived Democrats realized what was happening.
The vote ended three straight days of punishing debate in the Assembly. But the political standoff over the bill — and the monumental protests at the state Capitol against it — appear far from over.
Source: news.yahoo.com
0 comments:
Post a Comment