Credit Crisis Adds Millions to D.C.'s Interest Payments

rmowery

4-7-2008 6:09 AM

125 views

see more clips

The Real Source of Google's Billio...

Obama:Judge Him by His Laws

webERP - Open Source Accounting Sy...

In Debt We Trust

13 Year Old Steals Dad's Credit Ca...

NASA Satellite Captures Image of C...

Practical Travel Advice: Help! My ...

clips by rmowery

Bush Says Americans Face a `Tough ...

Bush blames India's Middle Class f...

Cheney hails Bush as new-age messi...

Embed This Clip In Your Site...

<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/17278e04-a794-4001-b2ee-9df95f374399/4A703725-15D6-4F9B-83BB-3AA4DFEC321A/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.washingtonpost.com/wp-dyn/content/article/2008/04/06/AR2008040601999.html?nav=rss_email/components" href="http://www.washingtonpost.com/wp-dyn/content/article/2008/04/06/AR2008040601999.html?nav=rss_email/components" style="font-size: 11px;">www.washingtonpost.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.washingtonpost.com/wp-dyn/content/article/2008/04/06/AR2008040601999.html?nav=rss_email/components"><H1>Credit Crisis Adds Millions to D.C.'s Interest Payments</H1></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.washingtonpost.com/wp-dyn/content/article/2008/04/06/AR2008040601999.html?nav=rss_email/components"><P>
Just as subprime mortgage borrowers were teased into taking out loans they later could not afford when the interest rates spiked, scores of municipalities, schools, hospitals and even museums are now facing soaring interest payments on unconventional bonds that proved too good to be true.
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.washingtonpost.com/wp-dyn/content/article/2008/04/06/AR2008040601999.html?nav=rss_email/components"><P>
The District has begun paying an extra $1.2 million every month because its interest payments have doubled, and in some cases even tripled, on $601 million of these bonds. That represents nearly one-seventh of the city's total debt and includes $24 million for the <A target="" href="http://www.washingtonpost.com/ac2/related/topic/Washington+Nationals?tid=informline">Washington Nationals</A>' new stadium, the District's treasurer said. City officials were convinced by investment banks that these types of loans would be safe and cheaper than traditional borrowing.
</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/4A703725-15D6-4F9B-83BB-3AA4DFEC321A/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

tags: