Bad stuff happens. I was listening to a remarkable NPR Story this morning about the Whitefish Bay School District.
The school district borrowed $165 million to purchase Collateralized Debt Obligations. Now that the CDOs are failing, the district may have trouble paying its loan back. So the bank holding the loan will have its capital position erode...etc.
This sort of thing happened to Orange County in the early 1990s. It sure would be nice if we didn't have to learn the same lessons over and over again.
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