I am a regular "Joe" may be not a plumber but a regular average next door guy who is concerned with USA economy. Currently underemployed and with a $ 250 000 in student loans and with a bankruptcy filed not long time ago my passion for the state of the economy arouse ... My purpose is to gather information from different journals and or blogs and help those fellows americans interested in the economy have a broader perception of what really is happening.
many municipalities, New York is included, are dealing with a problem: after 2007 swaps they made with banks are biting them back...Banks are getting benefits while the government is seeing its revenues dwindle and payments sky rocket due to the meltdown and the fact that the interest rate set by the fed is ZERO...penalties in the millions if municipalities brake the contract...Governments are pushing banks to make things more beneficial to the municipalities but that might hurt their relationship. The transactions are due from 2021 to 2037...meanwhile municipalities have to pay high interest rates and getting practically nothing in return....
many municipalities, New York is included, are dealing with a problem: after 2007 swaps they made with banks are biting them back...Banks are getting benefits while the government is seeing its revenues dwindle and payments sky rocket due to the meltdown and the fact that the interest rate set by the fed is ZERO...penalties in the millions if municipalities brake the contract...Governments are pushing banks to make things more beneficial to the municipalities but that might hurt their relationship. The transactions are due from 2021 to 2037...meanwhile municipalities have to pay high interest rates and getting practically nothing in return....
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