Cambridge's Triple A Bond Rating

No doubt that the high tech industry and the two prominent deep-pocketed universities are the reason for the City's Triple A Bond ratings. But don't forget that these same agencies rated junk credit default swaps as Triple A also. Credential abuse was apparent in other areas as well. It is one reason for so many failures of the Obama administration. The leaders worship credentials. 

http://www.thecrimson.com/article/2012/10/11/AAA-rating-Cambridge-bond/

With AAA Rating, Cambridge Thrives
By KERRY M. FLYNN and MAYA JONAS-SILVER,
Harvard CRIMSON STAFF WRITERS
Published: Thursday, October 11, 2012

Candidates Expose Themselves


Challenger Sylvia P. Glick said “Why is it that most of the people in Cambridge do not know that the city is controlled by an un-elected city manager who has a $4.5 million jury verdict against him?” Most people in Cambridge are too busy. They share the relaxed rectitude of officials they elect. City Manager Healy, "in office for 28 years, [. . .] presided over the maintenance of the city’s AAA bond rating." The three ratings agencies (investigated by the AG of NY and CA) gave Triple A ratings to the credit default swaps which were worthless. "Vice Mayor Sam Seidel, [. . .] named the improvement of the Cambridge Public School system the 'number one issue' of his campaign." Here's an example of what's wrong with this city. Seidel if he is sincere should run for School Committee. As the only candidate or resident that wants to improve the schools, is he courageous or what?

http://www.thecrimson.com/article.aspx?ref=529882

City To Vote On New Council
Published On Sunday, November 01, 2009 11:39 PM
By SARAH J. HOWLAND and JULIE M. ZAUZMER
Harvard Crimson Staff Writer

City Manager's Fantasies About to Implode


Cambridge MA City Manager often played his trump card, i.e. the city's Triple A Bond rating. In this essay Peter Schweich exposes the negative aspects of this boast, which will soon be a large burden on the city's taxpayers. Not only are the three rating agencies under scrutiny of CA and NY Attorneys General, they are also being sued for fraud. But also the city has a large amount of unfunded obligations which will have to be paid by increased property taxes.

http://www.wickedlocal.com/cambridge/news/x576530389/Guest-commentary-Cambridge-runs-amok

[Also at Forbes.com]
http://www.forbes.com/2009/09/30/cambridge-massachusetts-opeb-pensions-ratings-opinions-contributors-peter-schweich.html

Guest commentary: Cambridge runs amok
By Peter Schweich
Cambridge Chronicle
Posted Oct 01, 2009 @ 05:59 AM

Cambridge Manager Overstays His Welcome

Cambridge Manager Overstays His Welcome


The Manager's financial wizardry is smoke and mirrors. He switches accounts making it impossible to know what money goes where. City Councilors are spineless. Voters are clueless. Legally the Council can fire the City Manager but Healy holds power over the council, opposite of Plan E intents. Healy grants special privileges to Harvard allowing campus cops exclusive jurisdiction on their property. Lax enforcement by campus cops may be reason for recent shooting death on campus. The AG of NY investigates all three rating agencies (which gave Triple A status to worthless credit default swaps) making the City's bond rating questionable. City Police supervisor is married to MA AG making reform difficult.

http://www.boston.com/news/education/higher/articles/2009/05/30/city_managers_hold_on_cambridge_eroding/

or

http://tinyurl.com/kwr6yu


City manager's hold on Cambridge eroding
Lawsuit mars Healy's reputation
By Meghan Irons
Boston Globe Staff
May 30, 2009

City Manager, Development and Triple A Bonds

City Manager, Development and Triple A Bonds

The writer says, 'its time for the mayor and the City Council [. . .] to ensure J. F Whites accountability.' What the City Council thinks is immaterial and irrelevant. The City Manger alone has the statutory authority to make contracts. The City Manager is responsible for the doubling of the costs of city construction projects. The City Manager boasts of the 'successful' projects he oversees. (See Howie Carr and 'Don't Kill the Job.') These abuses will continue as long as clueless citizens focus on the impotent City Councilors who play 'Love Me More,' each week on TV. Ask the Manager about the Triple A Bond rating. Did he reveal that the NY State AG investigates the three rating agencies for fraud; that all three rating agencies gave Triple A ratings to worthless Credit Default Options that led to the financial collapse of the nation?

http://www.wickedlocal.com/cambridge/news/x1737133982/Letter-Walden-St-Bridge-contractor-should-be-scrutinized


Letter: Walden St. Bridge contractor should be scrutinized
STEVEN DEMAIO
Somerville
Cambridge Chronicle
Mon Dec 29, 2008, 06:45 AM EST

New Business

New Business

[This letter was published in the Cambridge Chronicle on Thursday June 12, 2008, and
in their online edition on June 10, 2008]

Cambridge City Councilors promote the idea that Harvard and MIT's
host city is always on the cutting edge. In this case they are many
years behind the times. (Erin Smith, "Cambridge man connected to
brutal kidnap scheme," Cambridge Chronicle, Jun 6, 2008) Kidnapping is
a major business in Italy, Russia, Colombia and Mexico. It has arrived
in Boston with an assist from Cambridge as a fund-raising mechanism
for those with no lobbyists in Washington or on Beacon Hill. It is
also a convenient way to control dissidents.
Claiming to be on the cutting edge is a clever public relations
device used by politicians to make the citizens proud of their city,
state country. In 1984 the device was used to make all groups no
matter how low they were on the economic and social ladder to think
that they were the best. The same can be said about Cambridge as a
world class, award winning, Triple A bond rated city where rodents
bite 7-year olds.

Roy Bercaw - Editor ENOUGH ROOM

Cambridge man connected to brutal kidnap scheme
By Erin Smith
Fri Jun 06, 2008, 02:06 PM EDT
Cambridge Chronicle staff

Cambridge MA Triple A Bond Rating

Cambridge MA Triple A Bond Rating

The Cambridge City Manager takes full credit for a Triple A Bond rating for the City. (Victoria Cheng, "All's A-OK with finances, as city saves big on bonds," Boston Globe, City Weekly, February 17, 2008) The rating agencies state it is the ability of the taxpayers to pay their taxes that is the biggest factor. Is this Manager the only one who could merit this rating with these taxpayers?
It is possible to employ bond insurers in order to get a Triple A rating. But these insurers squandered their trust by insuring the "shaky" sub prime mortgage debt. (NICOLE GELINAS, "THE BOND MESS: ELIOT'S BAD FIX," New York Post, February 21, 2008)
As a result of the sub-prime mortgage scandal the Rating agencies (Moody's, Fitch, and Standard & Poors) themselves are being questioned by the New York State Attorney General. They gave "high ratings to sub prime debt that later plummeted." (Bloomberg, "RATING AGENCIES NOT OFF HOOK: AG," New York Post, February 8, 2008) Were these ratings more reliable than Cambridge's Triple A Bond Rating?
Of what real value are these ratings? As long as the bond investors believe in the quality of the taxpayer the cost of borrowing will remain low. But it is still borrowing. Future taxpayers will have to repay these loans. Why is the Manager being praised for increasing the debt burden of the city's taxpayers?
Is this one more example of fooling the people and bewildering the herd as Noam Chomsky calls it?

Roy Bercaw - Editor ENOUGH ROOM

CAMBRIDGE
All's A-OK with finances, as city saves big on bonds
By Victoria Cheng,
Boston Globe Correspondent
February 17, 2008

* * *

THE BOND MESS: ELIOT'S BAD FIX
By NICOLE GELINAS
New York Post
February 21, 2008 --
[From article]
THE Port Authority and other public borrowers are paying steeply higher interest on some debt because Wall Street screwed up. And Gov. Spitzer and state regulators can make the mess worse.

* * *

RATING AGENCIES NOT OFF HOOK: AG
Bloomberg
New York Post
February 8, 2008 --
[From article]
New York Attorney General Andrew Cuomo said "supposed reforms" by Standard & Poor's and Moody's Investors Service, which gave high ratings to subprime debt that later plummeted, won't stop his investigation of the companies.