http://fortune.com/2014/06/12/new-jersey-tobacco-bonds/

I suspect that everyone needs to spend some time sorting thru this
article. It sounds like many states are going to get screwed in the
next couple of years.

Let me take a stab at explaining this.

The states got a bunch of money back in 2007 from the tobacco firms.
Most of that money was put up as collateral for huge loans to the
states. Now - the huge loans are failing because the tobacco firms are
not helping to pay off the loans fast enough since their income is
dropping. Hedge funds are swooping in to play all sorts of games with
the loans.

(I sense that even in those 4 short sentences I have got 50% of my
explanation wrong)

(Anybody remember when the auction of the cellphone freqs cut the US
deficit in half?) (Seems like the same sort of wild financial games)

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