I agree. I don't pay attention to Local Government Bonds because I know that they can change the rules AFTER you buy to screw you over.
There may be another reason for halting the sale of local Government bonds right now.
It could be possible that there is a lack of buyers for those bonds at the interest rates offered. The buyers want higher interest rates. Everyone knows that inflation is going crazy. You would be nuts to tie up funds for 20-30 years at next to nothing interest rates.
If that is the case the local Governments may not be allowed to sell those bonds at higher rates. That is just a guess on my part.
It appears to me that all these Local Governments that are highly in debt are about to learn the hard way when they go to refinance that debt.
If I lived in an area where the local government was about to refinance their debt I would consider moving because the Tax hammer is about to move into overdrive.
Get out before the crowd
It will.
So what to do ? Please tell
Honest question: What’s the relevance of this?
Never ever buy Local Government Securities. Whenever they run into problems they just change the terms.
I agree. I don't pay attention to Local Government Bonds because I know that they can change the rules AFTER you buy to screw you over.
There may be another reason for halting the sale of local Government bonds right now. It could be possible that there is a lack of buyers for those bonds at the interest rates offered. The buyers want higher interest rates. Everyone knows that inflation is going crazy. You would be nuts to tie up funds for 20-30 years at next to nothing interest rates. If that is the case the local Governments may not be allowed to sell those bonds at higher rates. That is just a guess on my part. It appears to me that all these Local Governments that are highly in debt are about to learn the hard way when they go to refinance that debt. If I lived in an area where the local government was about to refinance their debt I would consider moving because the Tax hammer is about to move into overdrive. Get out before the crowd