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While Jefferson County officials lay the groundwork “for the largest municipal bankruptcy in the nation’s history,” The Washington Post reports that the District of Columbia and others are facing this type of fiscal crunch: “…scores of municipalities, schools, hospitals and even museums are now facing soaring interest payments on unconventional bonds that proved too good to be true.”
Many of those affected are small bodies, but even prominent institutions — such as Georgetown University, Carnegie Hall, and the Port Authority of New York and New Jersey — have felt the impact. The surge in the cost of these [auction-rate securities] is the primary way taxpayers are being burdened by Wall Street’s credit meltdown.
Too good to be true, indeed. When you have been suckered, it’s a fleeting and bittersweet solace to know there have been others.
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Insane. Who would ever get a variable-rate loan without asking, “How much can the rate increase?” and “Can I afford the payments if it does?”
I guess the answer to that is “Georgetown University, Carnegie Hall, and the Port Authority of New York and New Jersey.”
I guess the answer to that is “Georgetown University, Carnegie Hall, and the Port Authority of New York and New Jersey.”
>>I guess the answer to that is “Georgetown University, Carnegie Hall, and the Port Authority of New York and New Jersey.”
Not necessarily. They are feeling the impact, but not going bankrupt. JeffCo, on the other hand…..