America is approaching economic collapse. The big problem appears to be coming from Municipal Bonds which may soon be going into default. Municipals are bonds issued by Cities and States, not Federal Bonds. The Fed is selling their own bonds to themselves by having the Federal Reserve Bank buy the Treasuries which is a joke amounting to nothing more than plugging up holes in the dyke with your fingers. Sooner or later you run out of fingers. Then the leaks start and eventually you need to withdraw your fingers and run away lest you get drowned.
States are in trouble. Arizona has sold twenty of their buildings to private investors for $735 million. This will only get them through fiscal 2010. The buildings sold included the State Capital. The state has agreed to lease purchase back the buildings allowing them to own them again in twenty years. Basically this is more borrowing.
California is following Arizona but on a grander scale. Their Governor has asked the California Supreme Court to decide on the sale of 24 state office buildings. The Supreme Court of Calif. recused itself since they occupy one of these buildings. Instead they sent it to some appeals court judges to decide. Arnold the Governor wants to sell the properties for $1.2 billion in a sale leaseback. The sale may be halted and not go through. If the sale goes through it would probably last California for one year. Then what do they do? Sooner or later they will run out of buildings. Doom and Gloom.
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