It Begins: Detroit default threatens underpinnings of municipal bond market. Detroit’s debt threatens a basic tenet of the $3.7 trillion municipal market: that states and cities will raise taxes as high as needed to avoid default. Detroit, where officials struggle to provide public safety and even street lighting, joins California cities Stockton and San Bernardino in trying to stick bondholders with a loss. With about 700,000 residents, it’s the most-populous city in at least 35 years to default on debt. Remember, the recession ended in June 2009, and to question that in any way is essentially a repudiation of the economic policies and proclamations by Congress, the FED, and the White House, got it?
Posted on: Sun, 23 Jun 2013 06:23:18 +0000