Goldman Sachs urged shorting against Muni bonds it sold to clients

November 11, 2008 by · Leave a Comment
Filed under: Stock Market News 

Well at the time the Californian Municipal bonds most likely looked good in a market that was thought to continue to go up forever.  Now that reality and common sense has set in, they are giving good investing advice.  In capitalism these type of things happen in the battle of greed vs. fear.  When I read this I just chuckled for a bit, everyone needs a little entertainment during all this doom and gloom (which is warranted).

News:

Goldman Sachs Group Inc, which acted for the state of California in selling bonds, has urged some of its big clients to place investment bets against some of those bonds this year, the Los Angeles Times reported.

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California letter asking for U.S. Treasury funding help

October 3, 2008 by · Leave a Comment
Filed under: Economic News 

Well when it rains it pours.  Look on the bright side, we have only 49 more states to go and a few incorporated areas like Puerto Rico and Guam and we will have bailed out every state in the Union.  This is the precedent we have set.  Who is next?  Auto companies – check, Airlines  – coming up?, Silicon Valley – could be?  This is the slippery slope that many economist in the minority now have been warning about and we are going to fall straight down it and the story always ends the same.  Run away inflation, reduction in the purchasing power of your currency and a hidden tax on everyone via the monetary inflation that was introduced to bail everyone out.  Remember, when you bail everyone out without huge tax increases or export growth then you bail out no one.

Full Text of Letter from Arnold Schwarzenegger to Henry Paulson:

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