He could change the tag name from "the motor city" to the "federal city", a 2nd federal ghetto like DC.
Highly amusing. Do the Wall St Shuffle. You would sell your mother. Watch the greenback rustle. Good song.
Sell right around earnings.
too much momentum and pension plans and mutual funds and 401ks continue to put their monies
into the crack market, um i mean the stock market. Shorts are going to suffer even if this market tops
It will take a very powerful, reality check correction of over 500 pts. Yes that's right, 500 pts.
Good luck. It's not really a matter of if, but when.
You are full of it because your short position has already but decimated. I mean DECIMATED. I know that in priniciple you are right, but what the hell does this market have to do with principles, or honor, or fundamentals??? Nothing. Sorry Charlie. You and many of us are just tunas ready to be vanquished in a short trap. I know it doesn'tmake sense but this stock and its price are not based on fundamentals. Okay??
Look at her posts frantically how bad municipal bonds markets are all night.
If AMZN's stock price was nicely declining, she wouldn't care a bit whether Detroit will default or not.
She's going to lose her house. (She took out a home equity loan on her house to short more AMZN shares about a week ago.)
"The default on the taxable pension debt Detroit sold in 2005 and 2006 led Fitch Ratings on Monday to downgrade the rating of about $1.5 billion of COPs to the lowest level of D from C.
Moody's also on Monday downgraded several Detroit bond issues, including a cut in the city's general obligation unlimited tax rating to Caa3 from Caa2 and reductions of its general obligation limited tax and certificates of participation (COPs) ratings to Ca from Caa3."
Kinda like when they all downgraded bear sternz stok after it went bk.
Let sybs repeat the important part here for #$%$ pumper idiots :
"1988, a study by Enhance Reinsurance Co. looked at historical patterns of municipal defaults from the 1800s to the 1980s and concluded that municipal defaults usually follow downswings in business cycles and are also more likely to occur in high growth areas that borrow heavily."
Insert amzn, nflx, pcln et al in anywhere here at will.
"TRENDS IN MUNICIPAL DEFAULTS
In 1988, a study by Enhance Reinsurance Co. looked at historical patterns of municipal defaults from the 1800s to the 1980s and concluded that municipal defaults usually follow downswings in business cycles and are also more likely to occur in high growth areas that borrow heavily.1 Following the 1873 Depression, when more than 24 percent of the outstanding municipal debt was in default, the greatest number of defaults occurred in the South, the fastest-growing region at the time. Factors that caused defaults included fluctuating regional land values, commodity booms and busts, cost overruns and financial mismanagement, unrealistic projections of the future, and private-purpose borrowing. The report also said that since World War II, revenue bonds have been a new source of default, largely a result of revenue overprojections.
The most infamous default cases involving general obligation bonds include New York City's default in 1975 and Cleveland in 1978. The largest default in the history of the municipal bond market was the Washington Public Power Supply System's (WPPSS) default on $2.25 billion in bonds. WPPSS launched a risky program to build five nuclear power plants in the 1970s to supply electricity to the Pacific Northwest. Only one of the five planned nuclear plants was ever completed. The WPPSS fiasco gave a lot more credibility to concerns that tax-exempt bonds were not a completely safe bet. "
So much for the rescue and revival of detroit and its auto industry. At least the hedge fund that ownz crystler iz OK thanks to a stock equity bailout - thank goodness. What would we do if the hedgefund that ownz chrystler went under?! - whew - that waz close... Thankgoodness for talf, tarp, ops twist, qe1-qe monthly and low interest rates 'for an wxtended period of time ' (that iz for those that dont need money, but its a different game when they do!
Headlinez read: "Detroit to stop paying some debt, putting it in default"
Look what happenz when a city defualts on bond debt..... Can you say Greece ? How much scamazon stock would you say a greazy greek ownz?
"In addition to the financial details, the 134-page document presented on Friday describes collapsing city services, rising crime and falling tax receipts.
Detroit is the poorest large city in the United States, with more than a third of its residents living below the official government poverty line, while its population has shrunk to about 700,000 people.
The city has the highest violent crime rate of any major U.S. city, some 78,000 abandoned and blighted structures and 40 percent of street lights dark, the document said. Only about a third of the city's ambulances were in service in the first quarter of 2013. Just 53 percent of owners paid their 2011 property taxes."
Fight fight fight fight:
"Leaders of some of Detroit's 48 public sector unions were upset by Orr's proposals, which included spinning off water and sewer services into an independent authority, as well as making the changes to pensions and health care coverage.
"When you're backed into a corner, the only thing you can do is fight and the only way we can fight is to strike," said Mike Mulholland, secretary and treasurer of AFSCME Local 207, the union that represents water and sewer workers."
Must be a 'fat cat' from JPM, looking to exact a pound and one half of flesh:
"Emerging from the meeting, one bond holder who asked not to be identified, said of Orr's proposal to pay them only pennies on the dollar: "It's just too much. It is an unprecedented amount to ask."
In the past, bondholders have not lost the principal amount owed them as a result of the financial restructuring of major cities such as New York and Cleveland."
But they got the underwriting feez, didnt they? A bank will be happy to loan to insolvancy to idiots that cant pay it back - they do it REGULARLY.
Az usual the 'little guy' gets fvck ed in the ars so that the cats may become 'fat cats'.... Say bubye to your life savingz and any recognizable retirement, sheeple. Wall street Thanks you for your heroic service in detroit:
"The document disclosed that Detroit could face unfunded pension liabilities, such as for retired police and fire workers, of $3.5 billion, up from the $644 million previously estimated.
Orr said unsecured creditors, including bondholders and pension funds, will receive a pro rata share of $2 billion of notes the city would issue and pay off as its financial circumstances improve."
Look back at the major markets in 1974, and see what happened when NYC did the same thing on a MUCH smaller amount of bond debt default:
"New York also declared a moratorium on some debt payments in the 1970s, but creditors were ultimately paid in full under a restructuring agreement, said Jim Spiotto, a municipal bankruptcy expert at law firm Chapman and Cutler in Chicago."
I see that skiidady had a go at you earlier today. It all sets up for a top, soon.
More sad newz about detroit, the 1st of many bond market defaults to come like dominoz:
"In a forceful opening salvo of negotiations with debt holders, Detroit Emergency Manager Kevyn Orr announced a moratorium on some principal and interest payments, including one payment he said was due on Friday.
Under his proposal, Orr said unsecured debt holders would be paid less than 10 cents on the dollar, but some creditors would get a bit more based on city revenue. Some $11.5 billion of the debt is unsecured and $7 billion secured, according to figures presented by Orr.
Orr said secured creditors would get better treatment, although how much better was not specified."