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State of Florida financial news

Or why the Rays won't get their nifty new pirate ship stadium.  It turns out the state is in a bind.

Schools and local governments in Florida who routinely deposited excess money in a state run investment fund were stunned today when the state suspended withdrawals.

This is because the nimrods who ran the fund were "investing" in extremely risky SIVs. Word got out, there was a run on the fund, now the state has slammed the door shut.

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Bloomberg TV just had an interview with a school official in a Florida town who said, I've got a $850,000 payroll for 230 employees to make tomorrow and no money to do it with because the state froze the money. He sounded practically in tears.

We are talking billions of dollars here that will evaporate. And there will be many more stories like this in the coming months.

Florida's Local Government Investment Pool is like a bank that schools and local governments park money.  It was suppose to be risk free, but it turns out it wasn't.

If the State of Florida has to come up with possibly billions of dollars to pay teachers, there is no way they will give a tax rebate to a sports team in the foreseeable future.

So what does this mean for the Marlins?  Well, not much on a statewide level since the state wouldn't give the Marlins a tax rebate when they were flushed with cash.

But it does have a curious aspect to it, which is: is the City of Miami or Miami-Dade caught up in this also?  I don't know at time I'm writing this, but is entirely possible they have been sold the same bill of goods by the same group of shysters.

Hopefully they haven't.  But if they have, their promised contributions to the a new Marlins stadium will be out the window.