Build America Bonds Are a California Subsidy

  The following is a wonkish discussion of one aspect of the White House budget. The President's budget will never see the light of day, but I think it is instructive to look at this component of the plan, and expose it for what it is - A fraud.

Brian Rezny submits: Last week, scheduled municipal bond sales totaled $15.4 billion -- the most in seven years, according to Bloomberg. And why? Because local and state governments are racing the clock to take advantage of the Build America Bonds program. The plan, which provides a 35% federal subsidy on interest costs, is set to expire at the end of the year (issuance through the end of October totaled over $150 billion -- around 25% of municipal bond sales).

Tom Lydon submits: Build America Bonds ETFs have been around for nearly a year, but BABs themselves have rarely been as cheap relative to corporate securities. It could be a signal to start thinking about these funds.

Stephen Yu submits:Lately, Build America Bonds (BAB) are like Rodney Dangerfield. They just get no respect. While stocks and commodities have soared since the end of August, BABs have stumbled.

Tom Lydon (ETF Trends) submits: Last year, the Obama administration implemented a Build America Bonds (BABs) program that helped states strengthen their struggling f

Bruce Krasting submits:The Sunday talk show economic topic was what to do with the Bush tax cuts that expire at the end of this year. I thought I heard a unanimous voice from the likes of Zandi, Corzine, Tyson and (surprisingly importantly) Senator Corker (R.Tenn.) that Congress should act quickly to agree to do nothing on those tax increases for at least another year. Look for that terrible choice to be made sometime in the next month.