Tax Payer Left Holding the Bag—-This Time Locally
Jan 28th, 2012 by Randy Toman
There is absolutely nothing the tax payer can do to stop these past errors in judgments nor can they do anything about this situation now. Why—-because the County does not have the moxie to sue the bank for out right deception and misrepresentation, these types of deals happen across the country to almost every municipality and school district in the country. The deal involves some type of swap or derivative scheme which bordered on nothing more then the house dealing the cards and the player (the tax payer) loosing something——in the case of Northampton County it was——- according to the paper—- $6.8—$25 million——pick a number—you the tax payer will loose something.
Read the article:
http://articles.mcall.com/2012-01-06/news/mc-northampton-county-swaption-options-20120106_1_swaption-termination-value-bond-rating
Quoted from the article:
Northampton County Council President John Cusick compared the swaption to a polyester suit—it looked good at one time, but doesn’t today. “I don’t think that at the time they realized what they did,” Cusick said of the 2004 council.
If they didn’t understand the Multimillion dollar deal they were signing, why in heaven name did they sign it? Who knows—we have most school district in the area in the same boat and I don’t think you have heard the last of these types of problems.
Along with not hearing the last of this——I believe the screws are being tightened down as I write. I believe all banks still holding any paper $ involving Swaps and Derivative are looking at their positions with the eye to put themselves in first place in the food chain of being paid or at least on even par with any other banks involved in the transaction thereby maximizing possibilities of getting a piece of the action $$$ should the house of cards fall—–and I believe it is close to just that—-Falling—BUT what do I know.
If you are involved with your local government and they have debt (which one doesn’t) you should ask how the bonds are financed—-is it a fixed rate/timed bond or is it a Swap/Derivative type deal with viable rate floating % with heavy duty penalties $ to get out. FIND OUT—Northampton County did—so did— Bethlehem Area School District and in both cases it will cost the tax payer dearly.
We Shall See—–how this is to shake out—-don’t you think?
A simple case of: “you get what you vote for”.
When will the voters learn?
“When will the voters learn?”
When our youth is properly taught, instead of indoctrinated! WE MUST get politics and government out of our schools! Don’t expect that to happen any time soon.
Outsider, I am with you 100% on education. What you say is necessary and critical.
There is another aspect, though. I’ve learned something that surprised me in my work for Ron Paul: the older people are, the more difficult it is to get them to desire liberty. The youth, even though largely educated in government schools, are able to see that they are being ripped off and enslaved by the corporate/fascist/big government conglomerate that the DemoPublican party represents.
Older folks, having lived through the age of FDR (or at least the programs set up by him), having allowed the government to dump the debt on future generations, think that the government should “take care” of everyone, and start wars all over the place. I’m not talking about “liberal Democrats”…I’m talking about most of them, including those who THINK that they are “conservative Republicans.
The idea of liberty scares them to death, and you can see it in the polls. The older folks prefer Mitt Newtorum and his leftist socialist programs, and hate Ron Paul. I know…I’ve been dealing with some older folks who CLAIM to want about 95% of what RP wants, yet they say they will “never” vote for him. They are completely brainwashed with 50 years of leftist propaganda, and have lost the capacity for reason. It is amazing, and a real shame.
So, despite the government education system, there may be some hope in the upcoming generations…that is if they are not completely destroyed by the debt that their grandparents have dumped on them.