News Focus
News Focus
Post# of 257262
Next 10
Followers 82
Posts 4778
Boards Moderated 0
Alias Born 02/27/2007

Re: zipjet post# 120377

Sunday, 05/22/2011 6:35:17 PM

Sunday, May 22, 2011 6:35:17 PM

Post# of 257262

it would be bad for the issuing states.



In fact not, because it opens up other classes of investors, such as IRA investors and non tax-paying domestic institutions and foreign investors of all types.

The Build America bonds were of just this type:

http://en.wikipedia.org/wiki/Build_America_Bonds

By increasing the range of possible investors, this can be a win-win for the municipalities and the Treasury - turns out that tax-exemption is an inefficient subsidy.

Peter

Trade Smarter with Thousands

Leverage decades of market experience shared openly.

Join Now