Default Closing In On Andrew Cuomo As Bond Rates Rise And Bonds Are Dumped

Prodigal, adjective: recklessly wasteful. from Latin, prodigus ~ sqander

      Mario's prodigal son will soon be banging his silver spoon and demanding his credit card debt be paid and that he needs to borrow to get more spending cash.   Meanwhile, default, bankruptcy, budget gimmick failures, real World accounting, and the ridiculous 7.5% "safe return" on pension investments are all closing in on "The Son of Mario."

    Andrew Cuomo's budget is a farce.  NY General Obligation Bond latest sales (at 9AM, 2/4/11) were at 5.00% to Investors and instead of the lower 3.357% which gave Cuomo's budget $5.6 Billion in borrowing costs.  Cuomo's budget seriously underestimated borrowing costs by over $2 billion dollars.


In the news:

1. "Congressman Patrick McHenry, R-NC, has launched a broad investigation into the struggling market for debt issued by states."
2. "House Speaker Newt Gingrich and former Florida Gov. Jeb Bush ... promoting a plan to enable near-insolvent states such as California and Illinois to go bankrupt as well."
3. Cuomo's deceit that he'll collect taxes from Indian Reservations on cigarettes, ignores the obvious that if Indian cigarettes include the tax, the reservations would lose all most all sales and thus a $130 million dollar lie.
4. Cuomo is still puffing up as he readies to run for President in 2016.
5. Cuomo wastes money on attracting business while ignoring repaying the Unemployment Insurance: State Trust Fund Loans of a growing $3.1 billion.   Cuomo must pass this on in higher unemployment contributions by New York Employers and watch the Cuomo Business Friendly New York fizzle.
5a.  The Delusional Cuomo, like Stalin, Mao and Fidel, thinks he and his committees can evaluate, "based on your ideas and what you bring to the table."  Poor Andrew doesn't know Mao, Stalin, and Fidel's economic plans all failed even with their committees.
6. "[Investors] in November and December pulled a record $21 billion from funds that invest in municipal bonds — twice as much as they did at the depths of the 2008 credit crisis."

7. "Investors pulled money from U.S. municipal-bond mutual funds for the 12th consecutive week ... Muni-bond funds had net redemptions of $2.7 billion in the week ended Jan. 26, the Investment Company Institute said today ...   The withdrawals,.... total $33.5 billion over the 12-week stretch."

 
   What will happen is Cuomo will run out of cash.   He can try I.O.U's, like California, ($3 Cuomo's backed by the full faith and credit of NY and Cuomo).  And/or, just not pay some bills.  And/or moan and whine to the President and Congress.   And/or pray for a Bankruptcy Chapter 10 for States.

P.S. Proposed Chapter 10 Bankruptcy along with above post will be sent to Newt Ginrich, Jeb Bush, Ron Paul and Rand Paul and faxed to the Representatives below on McHenry's House Committee on Oversight and Government Reform
Patrick McHenry 202-225-0316; Frank C. Guinta 202-225-5822
Ann Marie Buerkle 202-225-4042;Justin A. Amash 202-225-5144
Patrick Meehan 202-226-0280; Joe Walsh 202-225-7830
Trey Gowdy 202-226-1177; Dennis Ross 202-226-0585
Mike Quigley 202-225-5603; Carolyn B. Maloney 202-225-4709
Peter Welch 202-225-6790; John Yarmuth 202-225-5776
Jackie Speier 202-226-4183; Jim Cooper 202-226-1035

Cuomo's Crusade Falters As Moody's, Bankruptcy And Default Circle

The demagogue is one who preaches doctrines he knows to be untrue to men he knows to be idiots. ~ H. L. Mencken

A modern Tenth Crusade has been declared by 'The Son of Mario" Cuomo.  Here's a five-minute video version hoping to enlist people to support him in his battle against the “special interests and lobbyists”


"Cuomo again blamed state spending on 'permanent law'”  Permanent law is a fake malady made up to sell "Cuomo's Snake Oil Cure For Spending"  As New York's top court, the Court of Appeals, noted a half-century ago, it is fundamental to our democratic system that "one Legislature cannot be limited or bound by the actions of a previous one."

Cuomo hopes "to enlist people to support him in his battle against the “special interests and lobbyists” and promised his proposed-budget would “shake up the Albany establishment.”  Crusader Cuomo has already isolated those special interests and lobbyists to his committees, such as the Medicaid Redesign Team;  even Al Sharpton had input in Cuomo committees.

Cuomo blusters, “The real power of the governor comes when the people of the state stand with him. I need you to make your voice heard now.  We can right the wrongs of the past.”

Rise up; join "The Son of Mario" in his Crusade Against Special Interests and Lobbyists and buy into "Cuomo's Snake Oil Cure For Spending."
 
     Meanwhile, Moody’s joins the pension skeptics, with "Moody’s new approach is expected to be adopted by other credit-rating agencies ... to find borrowing for projects more costly and their bond offerings less attractive to investors.  ... It also reflects skepticism going forward about the expected rate of return on investment used by most pensions funds, such as the 7.75 percent figure used by the California Public Employees’ Retirement System."  Andrew is  delusional, if believes the 7.50% rate he uses is an improvement.

Reality, the Chinese, Bankruptcy, default, $3 Cuomos, and the Hand Writing on the Wall are closing in on "The Son of Mario," and his Crusade.

"The worst enemies of the republic are the demagogue and the corruptionist." ~ T. Roosevelt