explain this b
wouldn't bond selling actually prevent you from taking on debt?
@Domingo Halliburton and @Futuristic Eskimo you can jump in too since you both do that investing thing
Midterm Election
- Thread starter Robbie3000
- Start date
explain this b
wouldn't bond selling actually prevent you from taking on debt?
@Domingo Halliburton and @Futuristic Eskimo you can jump in too since you both do that investing thing
Futuristic Eskimo
All Star
Theyd be selling bonds that they originated to fund whatever they want to do with the money. Like any bond, they would have to pay that money back with interest for however long the maturity is. They're not selling bonds that they own that were originated elsewhere if thats whats confusing you.
so, if I understand this correctly, when local governments do this it's usually the interest that fukks them over and essentially puts them on a treadmill
Futuristic Eskimo
All Star
Im not really that familiar with the municipal bond market, but I think you are correct. If a city or state is having budget problems and can't service the interest payments fully, that would lead to a default. The Federal government has the advantage of being able to print as much money as it wants to services its debt, but cities and states do not. I would think New York would be able to handle its debt obligations, though, so I don't think it's that big of a worry. When government revenue starts shrinking dramatically, like in Detroit, that would probably lead to a case where it would be more and more difficult to roll over debt.
Again, not really 100% on this market, so take what Im saying with a grain of salt.
The way I see it, and trust me, I'm no expert, is it's just like taking out a loan. One borrows money in order to increase their worth in the long-run with the promise to pay that money back, with interest. In this case, the gov't is selling securities with the purpose of investing in education. Borrowing in and of itself isn't "bad", as long as the net gain is positive, IMO.
Was pretty unmotivated to be honest. Only real reason I voted was that I had a convo with my grandma a few days ago that went something like this -
So I dragged my ass over to the voting place during my lunch hour since I knew I wouldn't feel like doing it after work (ie. now). Was pretty dead in there too, I was in and out in like 15 minutes.
Grandma: Are you gonna vote on Tuesday?
Me:
Grandma:
Me:
So I dragged my ass over to the voting place during my lunch hour since I knew I wouldn't feel like doing it after work (ie. now). Was pretty dead in there too, I was in and out in like 15 minutes.
ill
Superstar
Went back to RI just to vote against Cianci for Mayor.
Buddy is gonna win in a landslide anyway
Domingo Halliburton
Handmade in USA
bonds are long term debt, so basically a loan. As a school you can raise property taxes to cover it. The advantage these bonds have is they're tax free.
some dumbass school near state college really fukked themselves with bonds and an interest rate swap. They lost millions
Yapdatfool
Superstar
Wrote myself in for everything, treasurer, governor, sheriff, coroner 
Scotty's gonna sweep WI anyways
Scotty's gonna sweep WI anyways
i voted last week. i said yes to everything on the ballot & voted for another bid for Quinn.
Domingo Halliburton
Handmade in USA
I could drive back to PA from jersey and vote but Corbett is losing by double digits anyways.
