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biomaven0

05/22/11 6:35 PM

#120378 RE: zipjet #120377

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