Quote:
Originally Posted by sloride
You should look into what happens to bond holders for airports and the such as some municipalities are considering and going through with leasing out those assets so the politicians can buy immediate votes and enrich their friends, it is just keeping them up nights figuring how to get that money today with out any regard to how are they going to replace that income next year. Who gets paid first unknown bond holders or those connected who stand to profit from that type of pilfering answer that. Just remember the supposedly secured bond holders of Chrysler and GM debt got a royal shafting so the politically connected and the unions could fill their pockets.
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Ive had airport construction and other municipal project bonds for quite a while, traditionally a US state municipal bond with a triple A rating has been the most safe and conservative way to invest money.
The downside is long term bonds and low profits comparatively, but to date, there is nothing but my growing default fear that disagrees with the safety and consistent return on investment of a US bond. They always pay back, and always do so on schedule.
Many of them ive purchased over the years have been bought back early at a decent profit by the state that started them, so I have not experienced or heard of what you describe happening. Sounds very much like conspiracy theory honestly unless you can substantiate it.
My feeling is despite the guaranteed return on investment and rock solid reliability of these types of bonds, that meanwhile the national debt spirals out of control in an ever expanding fashion.
Looking at it like the US was an individual that makes decent money, spends more than they make, borrows against it, and has always paid their bills, when it comes time to pay the piper, no one gets paid, even the bills that were always paid on time and in full.