Giving a whole new meaning to 'pouring money down the drain'

Jefferson Country, AL votes for bankruptcy after going $4.2bn in the hole, including $3.1bn for a new sewer system.

Everyone wants to know - how do you spend $3bn on a sewer system? Anyone? Bueller?

Expect some searching questions (and court actions) directed at JP Morgan's Muni department in the near future... Also expect some searching questions to be asked about who is exposed to muni default. Don't forget that state employees' pensions are paid out of county operating funds, not from purchased annuities - there's no magic protected pot of money. When the county runs out of money, its pensioners get to stand in line for the remnants.

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