Economic Crisis Results in SewageLeak

Part of a debt was issued by Fannie Mae and Freddie Mac, two quasi-governmental agencies that guarantee debt coverage, as we read in The Economist yesterday. Many predicted that this housing bubble post was a result, with all the risks that ensued, but they took some steps to avoid it.

No, while the party continued, it had to follow the rules until they took the chair and more people began to be stopped. According to The Economist: many of the effects of the crisis are happening in unexpected places. One of the latest casualties is the sewer system of Jefferty County, Alabama, USA. The County has agreed interest rate swaps worth U.S. $ 5.4 billion in an attempt to limit its financing costs. But the basis of the decision was weakened by credit problems of a single line, which secured the bonds of the sewer system.

The result was a sharp rise in financing costs. A group of banks led by JP Morgan, is seeking to put $ 184 million in collateral, the County refuses. As the dispute grows, the sewer system debt has been lowered.

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