Over 1,000 school districts and local government agencies have built projects with something called capital appreciation bonds. These are high-interest bonds that require no payments for 20 years — and then: Whammo! Huge payments for the next 15 years.
Here is the story of a California school district that built a high school without voters’ approval. When it is all paid for in 2049, it will have cost $154,000,000.
But of course, it will have been built for free. Why? Because the city will declare bankruptcy. “Sorry, suckers!”
There will be a Great Default. Then creditors will get a lesson in the risks of lending money for capital appreciation bonds.
Click the link. See how really stupid investors are throwing away big money.