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Bankruptcy Threat To Jefferson County, Alabama

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http://www.guardian.co.uk/business/2011/jul/24/jefferson-county-alabama-bankruptcy

Once famous for civil rights marches, Jefferson County, Alabama, could become the first US local authority to declare bankruptcy since California's Orange County went bust in 1994.

Amid concerns that many states and local councils could opt for bankruptcy in the face of budgetary pressures, officials are poised to trigger the biggest public sector insolvency in US history, according to a meeting notice from the county commission seen by the Bloomberg news agency.

At the meeting on Thursday, the five-member commission may also vote on extending a negotiating period with creditors who bought $3bn (£1.8bn) of bonds used to fund an upgrade of the county's sewers. Councillors have come to the end of a 30-day "standstill period" designed to allow the county and creditors, led by JPMorgan Chase, time to negotiate a restructuring of the loans to end the three-year debt crisis

The pressure is building, I wonder if uncle Ben will come to the rescue?

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Ultimately, if they default, a pension fund somewhere will lose $3bn.

We wont really see TSHTF until a big pension fund announces that it's gone bust because a state/country has defaulted. Then there will be some difficult decisions to make... people who saved for their retirement left penniless risks no-one saving for a pension and everyone with money in one pulling it out. The government will have a choice of printing to bail out the pension funds or telling the entire population that there is no point saving for a pension.

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Just like with the national governments, the only way out is to default. Ruffles is right that pension funds are toast. But we already knew that, this just brings it here faster.

We are in a historic bond bull market right now. Bonds in very shaky currencies and nations are yielding like 3% a year. Its sort of like NASDAQ 2000, when tech companies were yielding 80 times revenues.

When this bond super bull market eventually crashes, it will obliterate the pension funds once and for all.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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