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When Did Formerly Safe Bonds Become Unsafe?

Question: My question is: What about U.S. bond holders? I’ve seen bailouts of incompetent banks and businesses and some selective shareholder groups. Investment grade bonds were considered to be the safest investment next to…

Home Foreclosures Set Third Record in Five Months

By Online DA

Foreclosure filings in the United States jumped in July, again setting a record for the third time in five months. The increase was due to falling home prices and the recession, which kept some homeowners from making payments or refinancing.

A Little Poetry for California’s Crisis

Paul Solman: Questions keep coming in about the likelihood and consequences of a California default on its bonds. One unexpected result might be anger for the ages. Here’s Lake Poet William Wordsworth on the 1842 bond default of Pennsylvania,…

What Happens to California State Bonds if the State Goes Bankrupt?

By Business Desk

Question: I live in California and own California State Bonds. What happens to state bonds if the state goes bankrupt? Paul Solman: They stop paying, both interest and principal. That’s what a default IS. Last September 15, Lehman Brothers…

Could You Help Me Understand Credit Default Swap in Terms of Purchasing a Car?

Question/Comment: The lease is up on my Lexus and I inquired about buying it. Lexus financial said that I’d have to pay the residual value from the lease. That amount is $10,000 over market value. It was later explained to…

Argentina’s Interim President Takes Office, Declares Debt Default

After two days of riots that toppled President Fernando De la Rua, Argentina's Congress installed Adolfo Rodriguez Saa, a Peronist governor from a rural province, to serve as interim president until new elections are held in March.