Kyle Bass With David Faber: Bernanke's ZIRP Is An 'Inescapable Trap;' Muni Bond Bloodbath Beckons But "States Will NOT Default"
CNBC Video - Kyle Bass with David Faber - Feb. 16, 2011
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Video - Part 2
Municipal bond defaults on the local level are likely and investors would be better off avoiding them, according to Kyle Bass, managing director of Hayman Capital.
Bass said he generally agrees with the call by famed banking analyst Meredith Whitney, who said as many as 100 defaults are likely that will cost more than $100 billion in damage.
Though Whitney's call has prompted substantial backlash from her colleagues in the industry, Bass said the question is more a matter of degree.
"There are going to be a number of muni defaults, but it's where you draw the line. Will states be allowed to default? Will legislation be introduced to allow states to restructure? I don't believe that's the case. I believe states will not default."
Feb 23, 2011 at 5:15 PM
Reader Comments (7)
http://hosted2.ap.org/APDefault/*/Article_2011-02-23-Greece%20Financial%20Crisis/id-1d835ef5ecad472f87a4ad0ee478960a
http://www.chron.com/disp/story.mpl/ap/top/all/7443005.html
For many people who purchased a home for the first time in 2008, it's payback time.
It sounded like a great deal: become a first-time homebuyer and pocket up to $7,500 in a tax credit. But if you bought that house in 2008 and received the credit, you're required to start paying it back - now. That's because the credit was actually an interest-free loan provided by the government to stimulate a near-dead housing market. Unlike the homebuyer credits of 2009 and 2010, this one must be paid back over 15 years beginning with this year's tax return.
For someone who got $7,500, that's $500 a year. "This is not a freebie," said Jackie Perlman, a tax analyst at H&R Block's Tax Institute.
http://www.youtube.com/watch?v=WsUliy-UCu0
Any verification on that so-called prank call--which went on for 20 minutes solid? It's scary that a mf governor would fall for page 1 of the JV joke book. What an ass clown. If I were a partisan in the blue-red sock puppet match, I'd expect the manifest foolishness of the gov to show up as a 6 pm headline on the blue puppet channel.
Guess being exposed as a complete moron doesn't count as news in Kabukiville. A little too close to home perhaps.