Harrisburg or bust
Bond Buyer has the latest on what could be big news in Pennsylvania, let alone public fiance markets and in particular any future bonds the city here would ever want to put out… boring talk about the ability of the Harrisburg Authority to make bond payments coming due very soon. As mentioned here previously, it appears that the City of Harrisburg is on the hook for this indirectly… something which has sparked talk from the city officials of a potential Harrisburg bankruptcy in the not too distant future.
Always wondered what a potential bankruptcy for Pittsburgh would mean.. and it is something I have talked about publicly. People have tried to tell me it would not be allowed in Pennsylvania, but that is an almost meaningless argument. If now state capital is publicly talking about the potential of going bankrupt!!!! I think the repercussions would be even greater. Would the legislative denizens of Harrisburg allow their municipal colleagues down the street to reach that point??
So I don't really think it will happen.... but the open talk of it all is a new paradigm in itself. It has the bond markets and the bond insurers in particular pretty spooked I have to believe.