re: #264 Obdicut

But that money, then, didn’t go anywhere; it never existed.

Er… twofold: Yes, some money did exist and went to the banks for essentially nothing. But that money was generated through the county issuing bonds, i.e. going into debt. To finance going further into debt. To pay off more and more debt. Until the bills couldn’t get paid anymore. Now Jefferson County is in credit freeze.

Now, the horrible thing is that we cannot be sure whether the creditor, JP Morgan, is expecting the revenue from the bills or will get by with just a haircut through bankruptcy proceedings. If these municipalities defaulting will lead to the banks needing more bailouts, it will be deep trouble.