Originally Posted by
tsquare
With the 7th largest (I believe) economy IN THE WORLD, California is more than capable of taking the entire US economy down the toilet thru it's incompetence. With a Governor like Doobie Brown, and US Congresspeople like Dianne Feinstein and the Pelosibama, we should absolutely be afraid of that. Yes.. Buy a truck. It can carry more gold and bullets than a Hybrid anyway.
Began watching California muni's after reading this book:
Michael Lewis, How The Financial Crisis Created A 'New Third World' : NPR
This "depressing" author, also penned Money Ball, which is a great movie, and The Big Short, which made Billionaires out of those on the correct sides of the trades in 2008. It is LOL funny and very educational. Pick up a copy of any of his books, they are all fantastic.
I actually think muni defaults will be easier to manage than the feared US Government default. For starters, each is smaller and more isolated. It will be very ugly if you own a home in a community where this occurs. It is worth knowing the CFO of the County where you live. They know more than the Mayor (or Commissioner). Around Atlanta we have several communities where Delta pilots are on the Board and help run things. Good to be involved.
Originally Posted by
acl65pilot
If you knew who he was getting some of his investing advice from, you may understand why he has such a sunny outlook!
He wasn't wrong, but everything hinges on Andrea Merkle and the German taxpayer. Eventually they will say, "Die faule Griechen ihre eigenen Rechnungen bezahlen."
The other business increased invested capital 35% last year and will improve slightly as we close the last couple of months. Only lost a small amount on one deal and had to unwind another due to a bank selling us something they did not really own.
Municipal solvency is something to track now as you invest.