patrick.net

http://observer.com/2013/06/the-return-of-wall-streets-cassandra-in-armani-and-pearls-meredith-whitney-smacks-back/

I'll gladly spend every fucking cent I have buying munis. Here's my terms: 7% compound interest, 5/10/20 year maturity, principle and interest backed by land at $20k/acre. Should the city or county default, I get the land of my choosing and it can never be taxed.

Where do I sign?

so they sell land.. and they have lots of it. Santa clara county can unload all the land for new development.

State selling 81-acre Agnews site in North San Jose (updated)

http://www.bizjournals.com/sanjose/news/2013/06/10/state-selling-off-81-acres-in-north.html?page=all

The state of California has turned down a $76 million offer for about 54 acres of land in north San Jose in hopes of luring a higher bidder.

The Department of General Services on Monday said it was seeking offers for the entire 81-acre site that makes up the former Agnews Developmental Center. The site is located at 3500 Zanker Road, in an area thick with buildings owned by Cisco Systems Inc.

robertoaribas says

turned out to be utterly and completely wrong.

So far.
Maybe only her timing is wrong.
"While states have been able to put Band-Aids over their budget gaps to date by using rainy-day funds, stimulus money or muni market borrowing, or by raising taxes, “these levers have all already been pulled,” writes Ms. Whitney. The states have taken on close to $1.5 trillion in new debt since 2000, almost doubling their borrowings in the process."

I know a couple of CalPERS Princes retired on 6 figure pensions in their 50's with Cadillac health plans. I can't wait for this eventuality;
"Ms. Whitney makes clear that there are only so many possible solutions. First: slash those public employee pensions and health insurance coverage."

It's all about marketing. Muni suggest small or puny, and who wants small to no returns? They need to market them as Muno bods. thomaswong.1986 says

The state of California has turned down a $76 million offer for about 54 acres of land in north San Jose in hopes of luring a higher bidder.

76 million wouldn't even buy milk for the school lunch program, for one school district, for a school year.

thomaswong.1986 says

The state of California has turned down a $76 million offer for about 54 acres of land in north San Jose in hopes of luring a higher bidder.

It is great for l taxpayers that California is not selling public lands at low prices. This kind of thing (land sales) tend to be rife with corruption. Just look at the Americas Cup thing in SF. It is nothing but a land grab of public property. Disgusting.

Governments should lease public lands at market pirices, not sell it.

justme says

This kind of thing (land sales) tend to be rife with corruption.

That's how it works in Maryland.

Dan8267 says

I'll gladly spend every fucking cent I have buying munis. Here's my terms: 7% compound interest, 5/10/20 year maturity, principle and interest backed by land at $20k/acre. Should the city or county default, I get the land of my choosing and it can never be taxed.

Where do I sign?

Which munis are you referring to that are land backed?

FortWayne says

Which munis are you referring to that are land backed?

It's my suggestion on how municipalities can sell their bonds. That way I don't care if they default or not.

Meredith did not predict the level of involvement by the Fed.. had she known the level of Fed intervention in our "free market", esp in real estate, she probably would not have made her prediction.. remove the Fed and Meredith's predictions would have probably been realized.. or are you under the impression that all of this happens without the Fed ?

robertoaribas says

BTW, Meredith Whitney was very accurate on the housing crisis, but in 2007
predicted massive city defaults, and that turned out to be utterly and
completely wrong.

kmo722 says

remove the Fed and Meredith's predictions would have probably been realized.. or are you under the impression that all of this happens without the Fed ?

Isn't part of predicting the future, you know, predicting the future? It's like saying--I was really correct that the Bruins would win the Stanley Cutp. I just didn't predict that Bolland would score that last goal....

kmo722 says

Meredith did not predict the level of involvement by the Fed..

Oh come on, that is naive claptrap. She's a big player on Wall Street, and she wasn't born yesterday. You expect me to believe that Whitney thinks the Federal Reserve and Treasury would sit idly by and "let the cleansing begin!"?????? No, sorry that doesn't make any goddamn sense. Every doomer has an EXCUSE even Harold Camping, however this is no reason to give them a free pass.

justme says

Governments should lease public lands at market pirices, not sell it.

this was a good idea of selling it.. not leasing it out. Other examples of pubic land in South Bay should also be considered. Holding out for inflated costs.. the bubble mentality of prices is no stranger in SFBA.