Comments on: Municipal finance datapoint of the day, Latvia edition http://blogs.reuters.com/felix-salmon/2010/04/07/municipal-finance-datapoint-of-the-day-latvia-edition/ A slice of lime in the soda Wed, 19 Jun 2013 10:36:09 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: TomSchmit http://blogs.reuters.com/felix-salmon/2010/04/07/municipal-finance-datapoint-of-the-day-latvia-edition/comment-page-1/#comment-13303 TomSchmit Fri, 09 Apr 2010 04:09:42 +0000 http://blogs.reuters.com/felix-salmon/?p=3282#comment-13303 Moral hazard? To me the notion is overblown and gives excuses for strategies that are consciously created to not just mitigate risk but negate it. DB did not create a situation with moral hazard underlying it, they created a manipulative strategy for having their cake and eating it to. Living here in Riga, I also would remind people that the bridge in question is not just a scandal for financing mechanisms but also for incredible, probably corrupt cost overruns to the tune of maybe 2x original budget. I'm not sure that it was/is the lack of sophistication of municipal officials, but also some other "negotiations" that allowed this fairly transparent scam to proceed. Moral hazard? To me the notion is overblown and gives excuses for strategies that are consciously created to not just mitigate risk but negate it. DB did not create a situation with moral hazard underlying it, they created a manipulative strategy for having their cake and eating it to. Living here in Riga, I also would remind people that the bridge in question is not just a scandal for financing mechanisms but also for incredible, probably corrupt cost overruns to the tune of maybe 2x original budget. I’m not sure that it was/is the lack of sophistication of municipal officials, but also some other “negotiations” that allowed this fairly transparent scam to proceed.

]]> By: johnhhaskell http://blogs.reuters.com/felix-salmon/2010/04/07/municipal-finance-datapoint-of-the-day-latvia-edition/comment-page-1/#comment-13266 johnhhaskell Thu, 08 Apr 2010 04:59:16 +0000 http://blogs.reuters.com/felix-salmon/?p=3282#comment-13266 27 million lat would be US $51 million. You flipped the exchange rate. Small country, big currency. 27 million lat would be US $51 million. You flipped the exchange rate. Small country, big currency.

]]> By: DanHess http://blogs.reuters.com/felix-salmon/2010/04/07/municipal-finance-datapoint-of-the-day-latvia-edition/comment-page-1/#comment-13262 DanHess Thu, 08 Apr 2010 03:42:26 +0000 http://blogs.reuters.com/felix-salmon/?p=3282#comment-13262 "Municipalities have incredibly high wealth-to-sophistication ratios, which makes them prime targets for banks" Very well put. Can I nominate a fragment of a sentence for a Pulitzer? “Municipalities have incredibly high wealth-to-sophistication ratios, which makes them prime targets for banks”

Very well put. Can I nominate a fragment of a sentence for a Pulitzer?

]]> By: gringcorp http://blogs.reuters.com/felix-salmon/2010/04/07/municipal-finance-datapoint-of-the-day-latvia-edition/comment-page-1/#comment-13247 gringcorp Wed, 07 Apr 2010 19:33:52 +0000 http://blogs.reuters.com/felix-salmon/?p=3282#comment-13247 It's probably time to give these games with the EU's statisticians a name: Eurostat arbitrage. It’s probably time to give these games with the EU’s statisticians a name: Eurostat arbitrage.

]]> By: david3 http://blogs.reuters.com/felix-salmon/2010/04/07/municipal-finance-datapoint-of-the-day-latvia-edition/comment-page-1/#comment-13245 david3 Wed, 07 Apr 2010 19:10:17 +0000 http://blogs.reuters.com/felix-salmon/?p=3282#comment-13245 Markit MCDX. Started trading May 2008. A good entry over at Accrued Interest found here: http://accruedint.blogspot.com/2008/05/mcdx-once-munis-start-down-dark-path.html Markit MCDX. Started trading May 2008. A good entry over at Accrued Interest found here: http://accruedint.blogspot.com/2008/05/m cdx-once-munis-start-down-dark-path.html

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