The City could save $300+ million by simply delaying interest payments for two years. This would not be a default, just a legal, negotiated deferral.
It seems to me that the bondholders shouldn't mind too much since other risk free investments pay less than 1%. They will eventually get paid the 4% & 5% that they are expecting. In fact, the City could select CERTAIN bonds to defer - just enough to balance cash shortfalls each year until the economy perks up. Many years ago, the government issued IOUs to teachers and other government employees in lieu of paychecks. Why not modernize this idea and issue IOUs to bondholders instead of cash? This is just an idea - it certainly should not be used to avoid needed spending cuts. Vicky Heller Cedar-Riverside and North Oaks TEMPORARY REMINDER: 1. Send all posts in plain-text format. 2. Cut as much of the post you're responding to as possible. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
