The proposed monoline split into good bank/bad bank is so palpably
> dishonest that governments around the world should object.
>
> What the yanks are going to do is split the monolines into 2 and put
> the municipal bonds into the good bank and the cdos are going into the
> bad bank...now for the dumboes, that means you Mr Turtill what that > means is this. >
> The municipal bonds are bonds which will be supported with triple A
> rating, the CDOs will not be supported and they are products that
> councils and others have bought to get a higher interest return, these
> bonds will go from triple A to junk and councils and others will no
> longer have the return they contracted to get and they will not be
> able to get afull refund.
>
> The projected return on a CDO once it has lost its triple A is zero
> and the sale of it is projected to return 10% of its former worth
In effect what it means is this:
Every day life of a municipality will continue as is, but super funds, new projects, and even funding for existing projects will be cut back heavily, there simply will be no money in the kitty to pay...even a welfare bum like Pete Turtill could be better off than aguy relying on his super payments.