Municipal bond default is actually quite rare: no state has defaulted on a bond since the Depression, and only four cities or counties have defaulted on a guaranteed bond in the last 40 years.
To make it more affordable, the government could issue and guarantee bonds for a project that may well run to $7 billion–and 15 million square feet by the time it's completed within four or five years.
The loans would be made by the European Central Bank, but the finance facility would absorb any losses, leveraging its resources because it could guarantee bonds with an aggregate value many times larger than its available funds.
Because of an editing error, an article on June 11 about a lobbying effort to have the New York State Legislature guarantee bonds to encourage investment in the DestiNY USA shopping mall project near Syracuse misattributed a quotation.
One described the major drawback of a proposal for the government to guarantee bonds: "If there be profit, the corporations may take it; if there be loss, the government must bear it".
One plan favored by Germany involves setting aside money from the fund to guarantee bonds from countries like Italy or Spain against a first cut of any losses that buyers might suffer.
One remaining possible move, resisted so far by Berlin, is for the euro zone to guarantee bonds issued by member nations.
He said the company would no longer guarantee bonds via credit default swaps, which are tradeable insurance contracts that some Wall Street experts have begun to worry about.
While the city and state approved a plan using new taxes generated at the site to pay for the sewers, utilities and streets needed on the entire 10-acre lot, St . Louiswould not guarantee bonds to finance the deal.
Staples and associates sold hundreds of Floridians on the deal, which promised 12% returns, backed by "guarantee bonds".
The two entities guarantee bonds backed by mortgages.
