08-22-2013, 11:41 AM
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Banned
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Join Date: Aug 2012
Location: Northwest Indiana
Posts: 10,936
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Quote:
Originally Posted by JB3
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.
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I have been reading that the city of Chicago IL is considering leasing out to a private party the Midway Airport operations. So if that does come to fruition what is to say that the bond holders would be made whole. Our government OKyd the deal that wiped out the bond holders which should have been first in line with the GM and Chrysler take overs and rewarded their political allies like UAW instead. The City of Chicago also leased all of the parking meters to a Daley cohort for what has been reported at about fifty cents on the dollar and most of the money has been spent in less than five years and the lease goes for seventy five years. So I am just saying that there are so many instances that show our politicians will stop at nothing to steal today and give to their friends what they would get honestly tomorrow. And they would be stealing your money if you were made to forfeit those bonds.
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