Thursday March 11 2010
We study liabilities in Inermed II Accounting. This article details the precarious state of high yield of so called junk municipal debt. We have referenced in these posts the failing states and cities around the country. The re payment of their debt is now in doubt. The Fed Govt has lowered safe interest rates to zero. Every time this happens, investors take on to much risk by buying risky bonds with high yields. Those bonds have high yields, interest rates, because they might well not pay off. The result of course will be even worse for folks that needs what funds they have left. As a professional accountant one needs to understand the risks to properly advise clients.
IN a similar vein, the 'junk' financial stocks like CITI FNM FRE are all rallying, why? Risk is higher than ever. As I commented about Barack, the Admin is trying to make everyone believe there is no more risk, the problems are solved, hardly.
Professor Elam 
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