Miami’s Turn

Miami imposes financial urgency in union bargaining | Reuters.

Another municipality is on the path to bankruptcy. Miami has an operating budget of $485mm but gross debt issuance of $669mm. The SEC is considering bringing civil charges against the city for lying about its financial condition. This action would essentially cut it off from the bond markets. Don’t be surprised if the SEC waits until after the November elections to do something about those civil charges.

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