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View Diary: An Economy Working Only for a Few (11 comments)

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  •  Yep. Bondholders are viewed as (1+ / 0-)
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    Dr Teeth

    contemptible here. Assholes. Yet without people buying the bonds of these fucked-up municipalities, there would be no schools, no fire trucks, and in some cases, no city at all. The bondholders of Detroit debt are the people who lent their own money to the city when it needed it. Did they do it to get rich? No, the interest rates were always in the single-digit percentages. This was a risky investment, with little upside and tremendous downside. But bondholders are the greatest folks when they're buying bonds, not so much when they want their money paid back. It's silly.

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