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It costs more to insure California's municipal debt than Kazakhstan's bonds

Discussion in 'Sports and News' started by The Big Ragu, Jan 14, 2010.

  1. The Big Ragu

    The Big Ragu Moderator Staff Member


    It's true, according to CMA DataVision in London, which tracks bond insurance data.

    Or as he writes in the piece, "Borat, one. The Terminator, zero."

    On the bright side, he points out all the reasons why California's debt is really more stable than Kazakhstan's.

    I never thought anyone would be having to allay that kind of fear. It's pretty funny, actually.
  2. poindexter

    poindexter Well-Known Member

    Kazakhstan had a better year...
  3. qtlaw

    qtlaw Well-Known Member

    Kazakhstan has oil.
  4. Michael_ Gee

    Michael_ Gee Well-Known Member

    I thought it was potassium.
  5. Smallpotatoes

    Smallpotatoes Well-Known Member

    And all the other countries have inferior potassium.
  6. terrier

    terrier Well-Known Member

    Kazakhstan has better prostitutes.
  7. slappy4428

    slappy4428 Active Member

    Proveably and demonstrably so?
  8. Football_Bat

    Football_Bat Well-Known Member

    So does California.
  9. Baron Scicluna

    Baron Scicluna Well-Known Member

    Yeah, but Kazakhstan doesn't have Donald Sterling.
  10. TigerVols

    TigerVols Well-Known Member

    You know what else Kazakhstan doesn't have?

    It doesn't have to deal with getting just 78 cents back for every dollar it sends to Washington.

    Now, if California actually received about as much FROM the Federal Government as some stalwart Republican states do, then maybe the state's bonds would be better off.
  11. mustangj17

    mustangj17 Active Member

    It is apples and oranges because I'm sure the underwriting in Kazakhstan is nothing like the underwriting in California.
  12. The Big Ragu

    The Big Ragu Moderator Staff Member

    Care to explain that? Actuaries use a variety of metrics to try put a probability on default. Then they set their insurance rates accordingly. The same exact agencies insuring Cali muni debt are insuring Kazakhstan's national debt. What makes you think the underwriting criteria would be different, and how exactly is it apples and oranges?
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