I’m talking about creating the money that would be used to purchase enormous amounts of LA debt. How do they capitalize that operation? The Fed, as they did with QE1/QE2/OpTwist, just bought treasuries from primary dealers with money that came from, essentially, an input on some dork’s computer.

Interest on municipal bonds goes to the owners of the bonds which are usually wealthy people, insurance companies [!!], and funds. You said that it went to “banksters.” I just wanted to clarify that.

Really helpful.  Thanks.

When LA USD sells $1BN in debt, the banks might make something like a couple million, collectively, on the sale as the organizers, consultants, and order takers. When you say 50% of the sale goes to the banks, you really damage your credibility. There are lots of reasons to hate banks, use the good ones.

Probably because most bond sales are heavily weighted in the longest maturities [with a 10 year call option] meaning that if rates are higher at the time of refunding [most debt is remarketed in perpetuity - a town does not just pay down a $70M tranche out of the general fund] property taxes will need to be raised…

Thank you for mentioning Question 3, MA. It is a no-brainer to vote it down.

This is standard Republican behavior. Say one thing, do another. “Read my lips, no new taxes.” - HW Bush. Then what happened? He raised taxes. “Mission Accomplished.” - GW Bush. Then what happened? Iraq War for ten more years until Obama stopped the madness. Lies. Lies. And this has pretty much been modus operandi…