Saturday, December 1, 2007

US debt has far reaching implications..

Florida schools struggle to pay teachers amid freeze.

The crisis in the US has far reaching implications and is set to get worse before it gets better. A florida schools fund had to be frozen yesterday following a run on the fund when it became clear that "The Florida fund had invested $2 billion in structured investment vehicles, or SIVs, " ! "The Jefferson County school district was forced to take out a short-term loan to cover payroll for the 220 teachers and other employees in the system after $2.7 million it held in the pool was frozen yesterday"

Posted by doomberger @ 12:28 PM (386 views)
Please complete the required fields.

2 thoughts on “US debt has far reaching implications..

  • This is completely horrifying. The problem is that we may be about to have the same experience with Northern Rock. What no one seems to realise is that Northern Rock has a fund called Granite. It uses that fund to slice and dice loans and borrowing to balance the book and make it work. What no one knows is whether Granite has in fact sliced and diced the loans and borrowing so that they do work. I would accept that provided everyone pays their loans, it would work. However the American sub-prime has shown that this may not always be the case. My worry is that Granite may be completely rotten and insolvent as seen with a number of hedge funds and other investment vehicles. The tragedy is that I would have preferred to have seen the Government to have spent £24 billion (or what ever the figure turns out to be) on funding the health service or providing better schools rather than bailing out a few greedy depositors who went with Northern Rock because it paid a better rate interest. I also get hugely concerned that no one has actually raised this point.

    Please complete the required fields.

  • It’s not only about Granite… you know the “slicing” technique worked so well that I suspect they sliced everything, homeloans, credit card detb, car loans, LBO’s …

    Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>