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View Diary: Wall Street is Doing it Again: The Looting of America Continues (128 comments)

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  •  Rates on these range from 6 - 8% or so. (2+ / 0-)
    Recommended by:
    Sparhawk, nextstep

    In the case of Alvord, the interest rates on their cap appreciation bonds are the same as the rates on their standard bonds.

    They're just deferring the interest payments on it.

    •  You can't just focus on rate... (2+ / 0-)
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      elwior, CA wildwoman

      ...to establish fairness.  You're ignoring the rest of the deal, which is structured precisely so that (1) consequences occur long after approving civil servants have retired or died, and (2) it is practically impossible to pay off without massive privatization.

      By your logic, the "negative amortization" loans popular around 2005 were great deals because of their low rates.  But they ended up blowing up pretty badly.

      If you focus only on the apparent rate, no one will take you seriously.

      The road to Hell is paved with pragmatism.

      by TheOrchid on Fri Feb 01, 2013 at 08:17:06 AM PST

      [ Parent ]

      •  Re (0+ / 0-)
        You're ignoring the rest of the deal, which is structured precisely so that (1) consequences occur long after approving civil servants have retired or died, and (2) it is practically impossible to pay off without massive privatization.
        So I imagine that you oppose public pensions, then, for the same reasons?

        (-5.50,-6.67): Left Libertarian
        Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

        by Sparhawk on Fri Feb 01, 2013 at 08:57:20 AM PST

        [ Parent ]

      •  johnny wurster is likely (1+ / 0-)
        Recommended by:
        TheOrchid

        heavily invested in these types of bonds.

        The banks have a stranglehold on the political process. Mike Whitney

        by dfarrah on Fri Feb 01, 2013 at 09:11:01 AM PST

        [ Parent ]

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