Municipal Debt Market Death Knell?

[Willette]

U.S. governors seek $1 trillion federal assistance | U.S. | Reuters

"PHILADELPHIA (Reuters) - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession."

Are you a creditor of these people? Would you lend them money? Is the market for municipal bonds about to have a great fall? The governors appear to be saying that they want to continue to spend but need the Feds to print the money for them, since they can't print their own.

Or, in contrary fashion, will people take this as a sign the the states and municipalites are "good for it" because they can get it from the Feds?

[don]

Re: Municipal Debt Market Death Knell?

U.S. governors seek $1 trillion federal assistance | U.S. | Reuters

"PHILADELPHIA (Reuters) - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession."

Are you a creditor of these people? Would you lend them money? Is the market for municipal bonds about to have a great fall? The governors appear to be saying that they want to continue to spend but need the Feds to print the money for them, since they can't print their own.

Or, in contrary fashion, will people take this as a sign the the states and municipalites are "good for it" because they can get it from the Feds?

My daughter works for a Cali outfit that provides engineering and management service to municipal projects. A year or so ago they felt they were too Caltrans heavy, both because Caltrans was difficult to work with and they had become over reliant on one agency. Since then they've branched out as far as Louisiana wetland work.

Their situation becomes a real challenge getting work, in an increasingly competitive (and often against no-nothing bidders) and customer solvency guessing. Nimble? More like the guy jumping around in a Western while somebody shoots at his feet :eek: