• Scam Diego alerts

Mayor Jerry Sanders today (May 15) exulted, "This is the most significant day in the City of San Diego in the past four years. The City once again has access to the bond market." Sorry, Jerry. Investors will decide that. The mayor's statement is just more hyperbole. Standard & Poor's once again gave San Diego general obligation bonds a rating -- a tepid A rating. S&P has only four investment grade ratings: AAA, AA, A, and BBB. The A rating is third of those four categories. Many more cities have AA ratings. Bond rating agencies have the worst reputation they have ever had. They gave AAA ratings to portfolios full of doggy mortgages. People are beginning to understand that the rating agencies are paid by the institutions they rate -- a very obvious conflict of interest that the financial community hasn't tackled. The timing of this event before the election is suspicious. S&P's rating may do little, particularly since the 2007 audit hasn't been finished. S&P's claim that San Diego has improved its financial practices does not jibe with statements of auditors and former City financial employees. If local media do not report Friday on rating agencies' poor reputation, you will know that they willingly swallowed a pre-election ploy.

  • Scam Diego alerts

Comments

Anon92107 May 16, 2008 @ 6:20 a.m.

Here we go again Don, the U-T editorial board issued another rantitorial this morning that is another classical example of denial of accountability and refusal to accept responsibility for the U-T’s own “Ballot Recommendations” puppetmayors that created the budget crisis.

But then what can one expect when rated by the corrupt S&P that created the mortgage crisis.

0

Anon92107 May 17, 2008 @ 1:51 a.m.

Response to post #8: "I wonder" is about all we are allowed to do in San Diego.

Let's face it Don, it's a waste of time to go after corrupt politicians and their bloodsucker masters as long as corrupt judges keep overthrowing the Rule of Law, protecting the culture of corruption.

Former Supreme Court Justice O'Connor has warned us that until corrupt judges are exposed corrupt U-T politicians will continue to serve their masters and San Diego will continue to evolve into a third world city.

0

Don Bauder May 17, 2008 @ 6:14 a.m.

Response to post #15: Corruption sometimes starts at the top. The U.S. Supreme Court is a good place to start the cleansing process. Best, Don Bauder

0

Don Bauder May 17, 2008 @ 10:21 a.m.

Response to post #19: Boy, we would have to spew out a lot of waste material to inundate the WORLD with it. Best, Don Bauder

0

JohnnyVegas May 16, 2008 @ 10:32 p.m.

Maybe McGrory is moving back into the city to run for office.

LOL...Thanks for the chuckle.

Jack couldn't get elected dog catcher here.

He is the one MOST responsible for our financial mess.

Him and his pension underfunding scheme, where the "most" the City would have to pay in a downturn was $25 million. He was only off by a factor of 60.

0

Don Bauder May 16, 2008 @ 6:34 a.m.

Response to post #1: Just as I suspected, the two media outlets I checked, the Voice of San Diego and the U-T, had no mention whatsoever of the very low reputation of bond rating agencies. Either the reporters and editorial writers weren't aware of what has been going on in the mortgage market -- and, unfortunately, that's possible -- or these publications were slanting their prose to the mayor. Since they have been doing that all along, this seems likely. Best, Don Bauder

0

JustWondering May 16, 2008 @ 7:45 a.m.

There certainly is truth to statement "Sorry, Jerry. Investors will decide that." I suspect investors will be wary of San Diego's rating especially when other municipal offering carry less risk.

San Diego of course will do it best to market these securities (lawfully this time) but will probably pay higher rate(s)of return to entice investors.

On a more positive note, as far as I know, the City has never defaulted on a bond payment. While some will find security in this fact, I offer another statement of truth: Past performance is not necessarily an indicator of future performance.

0

Don Bauder May 17, 2008 @ 6:09 a.m.

Response to post #13: Don't underestimate San Diegans' ability to forgive and forget -- if they ever knew in the first place. Best, Don Bauder

0

Don Bauder May 16, 2008 @ 10:40 a.m.

Response to post #3 Good points: I don't know that the City has ever defaulted, at least in the last 100 years. San Diego will have to pay higher rates by virtue of the A rating, which is not very good. But remember that San Diego paid a staggering 7.5 percent on INSURED AAA ballpark bonds. Best, Don Bauder

0

Justice4all May 16, 2008 @ 10:53 a.m.

S & P is a joke. The rating agencies have been behind the 8 ball on subprime and many other financial debacles. We should check the S & P ratings of Orange County before they filed BK.

In related news, the gravy train paid off well for one of the ringleaders of the SD crisis:

The condo at 7151 Fay Ave , Unit #18, La Jolla, CA 92037, was sold on 05/07/08 at a tax value of $1,625,000. Sold by Ulla B. Hamilton and Philip H. Thayer, trustees, to John R. McGrory. 351-174-21-18. Publish Date: 05/16/08

0

JustWondering May 16, 2008 @ 10:55 a.m.

Ture enough on the original ballpark bonds. But I believe those bonds have been retired and/or refinanced by new bonds with lower rates.

I'm Just Wondering if "Jerry & Jay" will abandon their Lease Revenue private financing scheme in favor of the public bond markets?

0

Anon92107 May 16, 2008 @ 11:01 a.m.

Response to post #2 :

"-- or these publications were slanting their prose to the mayor." Yup Don, there can be no doubt at whatsoever!

The "two media outlets" make their living covering up for their puppeticians, and the judges make it even easier for them to get away with robbing the taxpayers and creating a third world lifestyle for San Diego.

0

Anon92107 May 17, 2008 @ 11:20 a.m.

Response to post #20:

We could start with the judges that the U-T/Davies mob put on the court to help them rob San Diego taxpayers.

0

Don Bauder May 16, 2008 @ 12:40 p.m.

Response to post #8: I wonder what it would be like if San Diegans got straight news from their mainstream media. Would that change perceptions of bliss? The voting patterns? Best, Don Bauder

0

Don Bauder May 16, 2008 @ 2:30 p.m.

Response to post #5: Looks like it's big news if it's Jack McGrory, former city manager. It could be his son (if he has a son), or somebody else, although there seems to be only a remote chance of that. I thought McGrory already lived in Rancho Santa Fe. This looks like a step down or a second (or third or fourth) home. Best, Don Bauder

0

Don Bauder May 16, 2008 @ 2:34 p.m.

Response to post #6: The original ballpark bonds have been refinanced. If SD can get back into the bond market, lease-revenue schemes should get less emphasis. Best, Don Bauder

0

JF May 16, 2008 @ 3:54 p.m.

Maybe McGrory is moving back into the city to run for office.

0

Don Bauder May 16, 2008 @ 5:47 p.m.

Response to post #11: That's all San Diego needs: another accounting prestidigitation expert. Best, Don Bauder

0

Don Bauder May 17, 2008 @ 6:12 a.m.

Response to post #14: Fumber, you should be working for the wastewater department, or for Waste Management. Best, Don Bauder

0

Don Bauder May 17, 2008 @ 11:15 p.m.

Response to post #21: Yes, the judiciary needs reform. Best, Don Bauder

0

Don Bauder May 17, 2008 @ 11:17 p.m.

Response to posst #22: Again I ask: are you CERTAIN that anon92107 is female? Best, Don Bauder

0

Anon92107 May 18, 2008 @ 1:53 a.m.

Response to post #22:

June 3 is almost here and it would help to know if Davies was packing the court with anymore sycophants to perpetuate his Brash Cash Bloodsucker corruption.

One would think that if Archon Solon could fix the corrupt courts of 6th century B.C. Athens, then The Reader could restore the Rule of Law in 21st century San Diego.

0

Fred Williams May 18, 2008 @ 7:11 a.m.

Don,

You are correct that we have never missed a bond payment.

Maybe it's time we should.

Jack McGrory, in his fancy La Jolla condo, still laughs at how he defrauded the city to the benefit of his wealthy backers. He'll never pay for his crimes.

But why should we pay? Those ballpork bonds, according to the SEC, were illegally issued.

Just walk away.

What do we have to lose? Our mythical 70% ownership in the downtown sports fortress? So what?

Let the bond buyers take it over. They'll force John Moores to pay a realistic rent, instead of the sweetheart-deal Jack McGrory got for him. We'll stop subsidizing this billionaire crook with extra trolley services, free cops, and parking bans downtown for every game.

Instead, we'll be able to keep the pools open for the kids, or pay for our libraries, sewers, roads, and other basic infrastructure.

Walk away from the ballpark bonds. Our credit's already in the dumps, with the second lowest possible rating. Otherwise, we're paying for Jack McGrory's fraud until 2037.

Best,

Fred Williams

0

Don Bauder May 18, 2008 @ 7:56 a.m.

Response to post #25: The rule of law can't be restored in San Diego unless the citizenry really wants it to happen. Best, Don Bauder

0

Don Bauder May 18, 2008 @ 8:01 a.m.

Response to post #26: I don't believe the SEC included the ballpark bonds in the list of the bonds issued illegally. I remember challenging the agency on that, and getting a meaningless reply. However, the ballpark bonds clearly had erroneous information on the pension problems, as did the other bonds (sewer, etc.), and also omitted key information on the pension woes. The government simply doesn't want to look into those smelly ballpark bonds (7.56 percent interest on AAA insured bonds). This may relate to its inability to look at the insider trading by board members in Peregrine Systems. Best, Don Bauder

0

Don Bauder May 18, 2008 @ 11:14 a.m.

Response to post #29: Fumber, if the Padres get a new ballpark in 2037, will the vendors sell wheatgrass? Best, Don Bauder

0

JF May 18, 2008 @ 2:42 p.m.

27.

"The rule of law can't be restored in San Diego unless the citizenry really wants it to happen."

That's the other side of the rule of sunshine you keep talking about. No one cares about the state of the city. No one cares about the sports teams. There's simply too much else to do here.

0

JohnnyVegas May 18, 2008 @ 3:39 p.m.

Fumbler-do you have ANY friends in real life????

0

Don Bauder May 18, 2008 @ 5:40 p.m.

Response to post #31: You make good points. I sometimes think that the perfect weather is San Diego's biggest enemy. People come to San Diego to go to the beach and play golf. They don't want anybody interrupting their bliss by rocking the boat. That's why it's a haven for scam artists. It is also why nobody does anything about corrupt governments that lead the county's cities in wrong directions. Best, Don Bauder

0

Don Bauder May 18, 2008 @ 5:44 p.m.

Response to post #32: Fumber, if you think about it, you will not send the JFs of the world to the electric chair. Rather, you will ram so much wheatgrass down their throats that they choke to death. But I do not want that to happen to JF. He is one of the best informed and most articulate contributors to this forum, even though I often disagree with him. Best, Don Bauder

0

Anon92107 May 19, 2008 @ 1:40 a.m.

Response to post #25 & 34:

Times are changing Don, the idyllic days of the mythical America's Finest City are dead and while people are getting a lot more interested in what the U-T era of corruption during Golding, Murphy and Sanders administrations did to us they still do not even begin to appreciate the enabling that corruption that our courts perpetuate even though former Justice Sandra Day O’Connor gave us a Citizens Beware opinion in a well read Sunday supplement for those who still read newspapers and think about what is happening to us.

Today we have one more chance, to elect Francis and re-elect Aguirre, and the only journal in San Diego that can get the word out on a mass distribution scale is The Reader. So your editions that immediately precede the June 3 election are all the more important.

The generations that Obama represents in San Diego need a Don Bauder Wake Up Call loud and clear today to get out the vote for Francis and Aguirre or they shall be well and truly screwed ad infinitum by their own indifference, like the generations that preceded them have done to ourselves already.

0

Don Bauder May 19, 2008 @ 6:42 a.m.

Response to post #36: I'm glad you called it the "mythical" moniker "America's Finest City." As you know, former Mayor Pete Wilson slapped that tag on San Diego when the city was in scandal: it had lost the Republican convention of 1972 because of an I.T.T. monetary pledge that smelled. That was a decade in which the two people who ran the town, C. Arnholt Smith and John Alessio, were convicted of crimes and spent some time in incarceration, despite efforts of President Richard Nixon to get the government off his friends' backs. Smith's bank and conglomerate went down, and other scandals (e.g. disappearances of con artists Clifford Graham and Walter Wencke) fouled the atmosphere. Best, Don Bauder

0

Fred Williams May 20, 2008 @ 10:04 a.m.

I would like to see more discussion of these kind of issues. So I put up a wiki that anyone can freely edit:

www.changesandiego.org

Please put more information there.

What is our "real" economic situation here in San Diego?

Will we be forced to raise taxes and lay off employees?

Can bad deals be reversed?

You can even extoll the benefits of wheatgrass, if you like.

I look forward to learning more from all of you.

Best,

Fred

0

Don Bauder May 20, 2008 @ 12:34 p.m.

Response to post #38: The exchange of ideas is a solid first step to combat entrenched corruption. Best, Don Bauder

0

JohnnyVegas May 20, 2008 @ 1:05 p.m.

www.changesandiego.org

Lots of good links on this web page.

Have to explore it when I get some free time.

0

Don Bauder May 20, 2008 @ 5:52 p.m.

Response to post #40: Yes, there is lots of good information on www.changesandiego.org. Best, Don Bauder

0

Don Bauder May 21, 2008 @ 8:26 p.m.

Response to post #42: If Aguirre hadn't pushed Sunroad, it would never have come to light. The building would be there and a menace to air transportation. And Sunroad's owner would continue donating funds and holding big fundraising blasts for Sanders. The city attorney's office succeeded in the Sunroad case. Best, Don Bauder

0

Don Bauder May 21, 2008 @ 8:28 p.m.

Response to post #43: Fumber, do you get paid by the real estate developers to propagandize? If you don't, you should. Best, Don Bauder

0

Sign in to comment

Join our
newsletter list

Enter to win $25 at Broken Yolk Cafe

Each newsletter subscription
means another chance to win!

Close