The pot calling the kettle black.
So, Glendale has been downgraded by Moody’s rating agency, but not low enough to completely put them in the extreme risk category. Despite the fact that their debt is much higher than similar municipalities throughout the country.
The bonds have been given a rating of A1, the lowest of the “A” ratings, and will officially go on sale Tuesday. The all-important interest rate to be paid on the bonds has not been released but it must be made public before the sale period begins. Industry speculation has the rate being pegged anywhere from six per cent to nine per cent.
In its report, Moody’s downgraded Glendale’s general obligation rating to Aa1 from Aa2 but revised its outlook on the city’s general obligation and related ratings to “stable” from “negative.”
Which begs the question. Who do you have to do a favor for to ensure a little bit better rating? Come on, we all know the game is played!
There are foreclosures in Glendale that have the folks who used to own the homes wondering what happened. There are pension plans that are wondering why they bought securities where homes were bundled in, and turned into derivative investments based on no underlying asset.
There are lawsuits going on in court where banks are trying to foreclose on people’s property, with just one little glitch – – they do not have proper title to go through with it.
The bankers have done what they do best. If you happened to catch Jesse Ventura’s Conspiracy Theory show when he confronted the Goldman Sachs “white shoe boys”, as Gerald Celente would say, the big argument they had was, hey, if they let us do it, it is their fault. Pass the buck 101. If you can get away with it, why not? Have a look at this segment on the Wall Street episode:
Notice when Ventura questioned the fact that bankers worldwide seemed to come from Goldman Sachs, including the “Canadian National Bank”.
Should we in Canada then be surprised to read headlines like this?: ”
Flaherty’s income trust was structured by Mark Carney in such a way that only the little investor was taxed and the big guys were given a free ride. Not only were the big guys given a free ride, this tax was imposed in such a way that the big guys were able to prey upon the small investor and expropriate wealth from the small investor in the amount of some $35 billion.
The white shoe boys, eh Gerald? Hmmm…
“Can any adult say bribes and payoffs”? Gerald, stop, your killing me. “When you retire you want a piece of it back”, Gerald, yeah we do. But I guess the white shoe boys, strategically placed from the ivy league of finance have other ideas.
The rules for these guys are different than for the average folk, right?
False numbers, corrupt investment brokers, Congress held captive or manipulated by corruption. But it could not have easily been pulled off without the co-operation of the ratings agencies. Why were they so accommodating to ensure the con took hold? The above clip tells us that Moody’s was part of the conspiracy to bolster the true value of the toxic waste known as the derivatives from Wall Street bankers like Goldman Sachs.
The L.A. Times and others in 2008 let the cat out of the bag further on Moody’s malfunctioning:
At issue are ratings on so-called constant-proportion debt obligations, investment vehicles that borrowed heavily to bet on credit-default swaps. (Swaps, in turn are a way to bet on, or hedge against, companies defaulting on their debt.) Trying to understand CPDOs will make your brain explode, but suffice to say they were designed by Wall Street’s rocket scientists to pay investors high returns at what appeared to be low risk.
That’s exactly how many sub-prime mortgage bonds were structured, of course. Whoops.
Ironically, we had the CEO of J.P. Morgan Chase, Jamie Dimon telling us all not long ago to beware of municipal bonds because they are risky.
The same bond rating agency is now determining the value of Glendale’s bonds?
Once you are part of a scam related to other people’s money, who can trust you again?
Moody’s has failed to advise the true state of Arizona. Under fire from the illegal drug war that is encroaching the borders of Arizona as we have reported before.
The “long-term” risk is the issue. Stability is the issue., Uncertainty of the economics of Glendale and the U.S. as a stable investment is in question, and not what should be supporting Glendale’s bond bid. But that information wouldn’t help the cause much would it?
Oh, and did we mention the Goldwater Group is still ready to pounce too?