Today, I am taking a look back at a letter I wrote Friday, November 21, 2008 dealing with a principal commonly used in bankrupcy proceedings called Cram-Down.
It seems fitting to revisit it to achieve some degree of perspective in view of communities whose municipal bonds’ bond ratings are at risk in the face of of dwindling tax revenue.
And taken in perspective of TARP and various stimulus programs which have been walked through Congress under the pretext that their purpose is aimed at saving community jobs and services, I have to ask; as what point will America become like Germany …less than willing to support the pigs of Europe …those like Portugal Ireland/Italy Greece and Spain?
After all, are the PIGS …all that much different than any number of the hardest hit states here in America?
Without a doubt, The Germans have had to pay an exacting price to pay for reunification …not to mention what the PIGS’ bail-out may wind up costing the quality of their return on social investments.
So, tonight is an opportunity to visit the letter below while asking what are state and local governments doing to maintain tight budgets and exercise fiscal withstraint?
It seems to me that in the face of lowered property values …rising property taxes are a sad social commentary …one in which state and local community governance has thrown away prudence and reason in favor of the opportunity to ignor reality and the consequences of neglect …hoping that no one would take notice.
In that respect, I will introduce my letter by saying; “…pay no attention to the man behind the curtain …” You better pay your taxes, or they might just cram them higher property taxes down your throats.
Cram Down? vs. Higher Property Appraisals & Property Taxes?
How does that translate to …Spending Cuts?
It doesn’t, does it!?