Topic: Municipal Bonds

The NIA would operate through two arms: the National Infrastructure Bank (NIB) and "Nikimak" (NCMC), a capital management corporation. These entities would purchase municipal bonds and repackage them into new financial instruments, similar to the securitization seen in the 2008 housing crisis. Researcher Alison McDowell warns that this system will lead to "social impact bonds" where human behaviors and social outcomes are traded as debt.

The Portland City Council votes to tax companies whose CEOs earn more than 100 times the median worker's pay. The hosts discuss this in the context of municipal insolvency, listing Portland alongside Flint and Detroit as cities facing severe financial crises and unfunded pension liabilities.

New York City officials proposed Resolution 0224, which calls for an official boycott of the State of Arizona in response to its immigration policies. The resolution aims to bar municipal travel to the state and stop the acceptance of Arizona municipal bonds. The hosts argue that such boycotts may violate interstate commerce laws and represent an "un-American" attempt by one state to interfere with the business of another.

Moody's has placed a negative outlook on all U.S. municipal bonds, signaling a broad economic downgrade. The hosts discuss George Soros's history, including his childhood in Hungary and his influence through the Open Society Institute. They compare Soros's currency speculation to Bill Gates's past decision to move assets out of the U.S. dollar.

New York Governor David Paterson is considering leasing or selling state assets—including the Tappan Zee Bridge, the state lottery, and public parks—to address a massive budget deficit. The municipal bond market has reportedly collapsed, leading to radical privatization proposals. The hosts jokingly suggest selling the entire state to Dubai investors to create a "Middle East crisis" reality show in New York.