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TOBACCO BONDS ARE IN TROUBLE FOLKS!

Discussion in 'FDA Regulations' started by P0P, Sep 18, 2019.

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  1. P0P

    P0P Supplier Associate ECF Veteran

    Nov 23, 2011
    C'Ville Virginia
    • Like Like x 1
    • Informative Informative x 1
  2. Rossum

    Rossum Surly Curmudgeon Verified Member ECF Veteran

    Supporting member
    Dec 14, 2013
    NE FL
    Both links are to five year old articles?
     
  3. P0P

    P0P Supplier Associate ECF Veteran

    Nov 23, 2011
    C'Ville Virginia
    Well perhaps its worse now ;)
     
    • Agree Agree x 1
  4. P0P

    P0P Supplier Associate ECF Veteran

    Nov 23, 2011
    C'Ville Virginia
    Bloomberg (Link)

    One of the most volatile corners of the municipal-bond market is being whipsawed by Washington.
    Securities backed by the payments states receive from the 1998 legal settlement with tobacco companies tumbled at the end of April after legislation was introduced in Congress to raise the age for buying cigarettes, a step that threatened to accelerate the steeper-than-anticipated drop in consumption that’s weighed on the prices of the bonds.

    May 8, 2019
     
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  5. zoiDman

    zoiDman My -0^10 = Nothing at All* ECF Veteran

    Supporting member
    Apr 16, 2010
    So-Cal
    A Less Harmful Tobacco Product that would fall under the Current MSA and would be Easily Taxed to boot.

    Sounds like the Perfect Mouse Trap.

    And what a Wonderful Coincidence that it just Happened to be Approved right when e-Cigarettes are about to be Decimated.

    Talk About Luck.
     
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  6. P0P

    P0P Supplier Associate ECF Veteran

    Nov 23, 2011
    C'Ville Virginia
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  7. kross8

    kross8 Ultra Member ECF Veteran

    Feb 20, 2016
    Seabrook Texas
    Ppt ( plunge protection team) been busy playing magic musical chairs with the debt markets,,, Basel II & III have proven more of a suggestion than a policy.

    Stock traders don't understand the bond market is huge & far more important than stocks,,, that's why the PPT has neglected them for some time
     
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  8. Rossum

    Rossum Surly Curmudgeon Verified Member ECF Veteran

    Supporting member
    Dec 14, 2013
    NE FL
    Not only that, but the credit (bond) markets have an insane amount of "insurance" outstanding against them in the form of CDS (credit default swaps) and other derivatives such as interest rate swaps. There's very little actual capital backing these derivatives, and they're traded over the counter rather than on exchanges with rules. So it doesn't take a whole lot of bond defaults to cause a huge ripple effect.

    I've long thought it would be very ironic if tobacco bonds failing were the black swan that triggered the next financial crisis, and a next one there will certainly be, because the problems that caused the last one were never really fixed, they were just swept under the rug.

    Vaping had the potential to kill the MSA bonds dead. Is it any wonder that very powerful forces seem to have aligned against it?
     
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  9. kross8

    kross8 Ultra Member ECF Veteran

    Feb 20, 2016
    Seabrook Texas
    because the problems that caused the last one were never really fixed, they were just swept under the rug.-EXACTLY!!!
    & the media/politicians named it the great recession when in fact we were in a panic depression - if Joe6pack knew that he would have woke up and taken credit & his job far more serious than they do today,,, todays adults who believe the media about the recession label are no dif than a millennial on the verge of being a snowflake unable to quantify the concept of responsible money management
     
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  10. MacTechVpr

    MacTechVpr Vaping Master Verified Member ECF Veteran

    Supporting member
    Aug 24, 2013
    Hollywood (Beach), FL
    Very well put above. Why I long ago thought that problems for an e-cig future would be structural, political. I prayed this would not eventually usher in the demise of the industry. We bought the demo, armed up well enough to perhaps become the victim of our own success. But if you're going to marshal a protest you need to understand the meaning and purpose of the banner you're carrying.

    Tried hard here and on the outside to emphasize the importance of community. We needed an army philosophically, and still do. The factors that may form up the next big crisis are many, i.e. student loan debt, with vaping now certainly a pinnacle part.

    Good luck. :)

    p.s. sorry for the late edit
     
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