Poorest junk bond towns ... thanks John & Yvette Massey!

Of the 7,800 bonds in the U.S. secured by state or local governments, only 25 are currently speculative-grade, or junk-bonds, rated by Moody's Ba1 or lower. Only municipalities received such low ratings, and the reasons vary. Moody's report, "A Look at Speculative-Grade Local Governments in the Wake of the Recession," details the economic issues that have lead each into junk-bond territory. 24/7 Wall St. has analyzed the nine worst cities, whose credit rating is Ba2 and lower.


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• America's Most Dysfunctional Boards

Each of these municipalities faces a unique situation, Moody's explains, and the list is not indicative of a greater trend. Most municipalities, Moody's writes in the report "face deeper and longer-standing problems than investment-grade issuers." Analysis by 24/7 Wall St., however, reveals a number of commonalities between the lowest-rated areas.

For instance, a number of the municipalities on the list are facing shrinking tax bases possibly exacerbated by the recession and high unemployment. Some cities, such as Detroit and Pontiac, have had their economies devastated by the recession. Their populations have decreased dramatically and struggling major tax-paying corporations have contributed much.

Other cities have excessive liabilities that they are unable to meet. Central Falls, RI, declared bankruptcy in August due largely to its bloated pension plan. Strafford County, NH, spends two-fifths of its budget on a single nursing home. It funds residents' Medicaid, but is not receiving full reimbursement from the state, causing multi-million dollar deficits.

Other municipalities have simply made bad investments. Harrison, NJ, built a $200 million sports arena that has not brought in the amount of money the city was expecting. Similarly, Salem, NJ, built a large office building downtown with the intention of leasing office space. But construction delays caused lease payment delays and money has been taken from the debt fund numerous times.

24/7 Wall St. has looked at the nine municipal bodies with the worst credit ratings assigned by Moody's, not including school systems, rated Ba2 and lower. To get a sense of how these areas are doing, we also included most recent median household income figures from the Census Bureau. This level of credit rating implies a substantial risk of default for investors who bought these bonds with the expectation of being repaid.

This is 24/7 Wall St.'s list of Nine American Cities Going Broke.

1. Central Falls, RI

Credit rating: Caa1

2009 revenues: $17,601,000

2009 debt ($000s): $18,753,000

Median household income: $33,520

In August 2011, Central Falls declared bankruptcy largely because of the city's pension plan, which promised $80 million in retirement benefits. According to the New York Times, the "pension fund will probably run out of money in October, giving Central Falls the distinction of becoming the second municipality in the United States to exhaust its pension fund, after Prichard, Ala." This $80 million is approximately five times the city's general fund budget.

2. Pontiac, MI

Credit rating: Caa1

2009 revenues: $46,183,000

2009 debt ($000s): $99,115,000

Median household income: $32,199

The source of Pontiac's troubles is similar to that of Detroit's. General Motors, which went bankrupt during the recession, is the city's largest employer and taxpayer. The city has been in receivership since 2009. Also in 2009, the city sold its Silverdome stadium, which cost over $55 million to build, for $583,000. Such concessions have not been enough to raise the city's rating.

3. Jefferson County, AL

Credit rating: Caa1

2009 revenues: $309,440,000

2009 debt ($000s): $1,337,233,000

Median household income: $44,718

Jefferson County's debt, which is the second largest on this list, comes from a $3.2 billion overhaul of the county's sewer system as well as a series of risky, controversial bond deals meant to help the county pay for the sewer work. A number of city officials have been sent to jail on corruption charges linked to the project. "The county defaulted on almost $3.5 million in 2008 — the biggest default in municipal history," according to Moody's. Worse still, this year, the Alabama Supreme Court invalidated the county's occupational tax, which accounted for one quarter of the county's total revenues.

4. Harrison, NJ

Credit rating: Ba3

2009 revenues: $32,763,000

2009 debt ($000s): $92,613,000

Median household income: $49,596

Harrison "issued a significant amount of debt to foster redevelopment, and continues to collect substantially less revenue from those developments than projected," Moody's explains. One of the largest projects is the $200 million Red Bull Arena, which was opened in March 2010 and cost the city $39 million in debt but has yet failed to have the expected returns. To help solve its debt problem, the city, which has a population of 13,620, plans to fire some police officers and firefighters.

5. Detroit, MI

Credit rating: Ba3

2009 revenues: $1,280,791,000

2009 debt ($000s): $2,449,480,000

Median household income: $29,447

Detroit has suffered worse from the recession than almost any other U.S. city. The effects of the city's economic situation are reflected in its credit rating. Many of Detroit's biggest companies, such as General Motors and Chrysler, declared bankruptcy, placing "significant pressure" on the city, according to Moody's. Detroit relies on the auto industry for its tax base, and the industry's contraction has hurt the city immensely. The city became a "habitual note borrower," relying on investors to close budget gaps.

6. Salem, NJ

Credit rating: Ba3

2009 revenues: $7,059,000

2009 debt ($000s): $10,098,000

Median household income: $28,397

Salem guaranteed bonds issued to finance an office building downtown. The city planned to pay for the bonds with revenues earned from leasing office space in the building. However, revenue fell short of what was projected when construction delays caused lease payments delays. "The project's debt service reserve fund has been drawn down numerous times," Moody's reports. "Once the reserve fund has been exhausted, the city is obligated to pay debt service for the life of the bonds."

7. Riverdale, IL

Credit rating: Ba2

2009 revenues: $8,358,000

2009 debt ($000s): $9,350,000

Median household income: $40,659

Riverdale has run operational deficits for a number of consecutive years, driven primarily by a reduction in the amount the village relies on debt financing. "The village funded itself by borrowing money from its sewer and water funds, and now carries an operating fund balance of -52.1% of revenues." The city, like many others on this list, is extremely small, with a population of just over 14,000.

8. Strafford County, NH

Credit rating: Ba2

2009 revenues: $36,204,000

2009 debt ($000s): $23,866,000

Median household income: $58,363

Strafford County's low rating is largely due to a money-losing nursing home, on which the county spends two-fifths of its budget. Just under 85% of the patients at the Riverside Rest Home are eligible for Medicaid, yet state reimbursements to the county continue to decrease, according to Moody's. Between 2004 and 2009, the nursing home lost $36 million. The county does not expect to recover much of the money it used to cover these deficits.

9. Camden, NJ

Credit rating: Ba2

2009 revenues: $181,257,000

2009 debt ($000s): $103,284,000

Median household income: $25,418

Camden suffers from high unemployment, high poverty, and a weak tax base. The city's median household income is less than half that of the national median income and is the lowest of all the municipalities on this list. Moody's notes that "more than half of Camden's real estate is tax-exempt, hampering already weak tax collections." The city has had a speculative grade credit rating since 1998. Three out of the past five Camden mayors have been sent to prison for corruption, the most recent in 2001.



John & Yvette Massey

Mathematics ... thanks Lou!

Brain study






Good example of a Brain Study: If you can read this you have a strong mind:

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PL3453 F0RW4RD 1F U C4N R34D 7H15 :)..

obama's illegal internet takeover ... Thanks Sarah Rapp!

Sent: Mon, 26 Sep 2011 23:29:25 -0000 (UTC)

Subject: Action Needed: Obama's Internet Takeover to Begin Nov. 20



Grassfire Nation Update



Brown,



Late last week, the Federal Communications Commission (FCC)

took what is being called "the final step" towards implementing

their illegal Net Neutrality regulations.



You may recall, that back on December 21, the FCC bypassed

government regulations and seized control of the Internet --

delivering what many believe is a knockout blow to one of

the last, great free-market frontiers our nation and the

world has ever seen.



According to the organization Less Government, regardless of

multiple lawsuits, a move by the House of Representatives

and a D.C. Circuit Court unanimously ruling that the FCC

had no authority to take control, the fed is still arrogantly

pushing forward toward full implementation of their Net

Neutrality regulation on November 20!



The FCC's Net Neutrality regulations would be job-killers --

likely stifling the $30 billion annually that investors pour

into Internet development and advancement and hundreds of

thousands of jobs.



And that's not the worst of it... As we warned several months

ago, these regulations will lead to the FCC's control of

Web content!



Should we expect anything less?



Considering government growth and control is surging while

private sector job opportunities continue shrinking! Now

Americans are in danger of losing their free speech rights

through this latest FCC Net Neutrality power-grab!



+ + A Grassroots Call to Action!



The only way to stop this runaway train is for grassroots

Americans to appeal to the Senate to move quickly to pass

a Congressional Review Act (CRA) Resolution that would

effectively kill the illegal, job-killing Net Neutrality order.



Brown, having already signed our petition to stop the fed

takeover of the Internet, we are asking for your help in

two vital ways.



First, forward this alert to 25-30 friends and family inviting

them to take action with you and against this federal power-

grab that is set to go into effect on November 20.



Direct them to sign our national petition by clicking here:



http://www.grassfire.net/r.asp?u=50938&RID=32619374



With more than 100,000 petitions already in hand, Grassfire

Nation is relying on our team to help rally and mobilize an

additional 50,000 citizen signers over the next several weeks

leading to our delivery to the FCC and key members of the Senate.



+ + Fax Your Senators Today



Brown, we've also created an exclusive platform giving

citizens like you the ability to fax your personal comments

to your North Carolina Representative and two Senators, as

well as other key lawmakers regarding the FCC power-grab of

the Internet simply by clicking below.



Click here to schedule your faxes for quick delivery:



http://www.grassfire.net/r.asp?U=50933&CID=141&RID=32619374



Sending faxes directly into key Senate offices demanding

they pass the Congressional Review Act Resolution of

Dissapproval is the single, most effective way to

communicate your thoughts and concerns. These faxes

are noted and read, and make a profound impact!



If you are concerned about the loss of your Free Speech Rights

with the federal takeover of the Internet speak up by

scheduling your personalized faxes today.



Click here to take fast action:



http://www.grassfire.net/r.asp?U=50934&CID=141&RID=32619374



Grassfire Nation has also made it easy for you to send faxes

on your own by making the contact numbers and letters

available for download. Just click here for more:



http://www.grassfire.net/r.asp?U=50935&CID=141&RID=32619374



Thank you for your outstanding efforts.



Grassfire Nation



P.S. Our goal is to rally and mobilize a powerful group of

citizens who object to the federal takeover of the Internet

and the threats to Free Speech Rights. Please alert your

friends to take quick action to ensure they are included

in our upcoming petition delivery:



http://www.grassfire.net/r.asp?u=50938&RID=32619374


+ + + + +

Grassfire Nation, a division of Grassroots Action, Inc., is a

million-strong network of grassroots conservatives that is

dedicated to equipping you with the tools that give you a real

impact on the key issues of our day.

Copyright 2011 Grassroots Action, Inc.

To my friend ... Thanks Pat Whitehead!

Sent: Tue, September 27, 2011 8:39:08 PM

Subject: To my Friends.


Think about this for a minute....

If you happened to show up on my door step crying,

I would care!



If you called me and asked

Me to pick you up because something happened,

I would come!



If you had one day left

To live your life,

I would want to be part of

That last day!



If you needed a shoulder

To cry on,

I would give you mine!



This is a test to see who your real

Friends are or if you are just someone

To talk to you when they are bored.





Do you know what the relationship is between your two eyes?



They blink together,

They move together,

They cry together,

They see things together,

And they sleep together,

But they never see each other;

....that's what friendship is.



It's

'World Best Friends Week'



Send this to all your good friends, even me,

If I am one of them..



See how many you get back



If you get more than 3

Then you really are

A lovable person...



Life isn't about how you survived the storm...

it's about how you danced in the rain!