Economic winter is hurting Americans.
Grand Rapids, MI -- (SBWIRE) -- 04/30/2013 -- It is difficult to stay abreast of everything that is happening financially in the United States today. Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC can be counted on to give a hand when it comes to understanding the latest events in U.S. and world economics.
Whether people enjoy his weekly newsletter at http://www.moving-markets.com or his blog at http://www.dennistubbergen.com, Tubbergen is dedicated to sharing his viewpoints and opinions. On April 26, 2013 his blog was titled Winter Economic Season Continues to Take its Toll on U.S. Cities.
"Bloomberg reported that the City of Philadelphia is looking to sell assets to remain solvent," began Tubbergen. "Additionally, the city is meeting with potential investors in an attempt to get some help with a dismal financial situation."
Tubbergen quotes below from the April 16, 2013 Bloomberg.com article.
Philadelphia Mayor Michael Nutter, whose municipality has the lowest credit rating of the five most-populous U.S. cities, will address investors at a conference financed by underwriters and closed to the public and the press.
The invitation bills tomorrow's meeting as a chance to hear "Philadelphia leaders and investors discuss building the city's future." In addition to Nutter, a 55-year-old Democrat, speakers will include finance director Rob Dubow and Mark Gale, chief executive officer of Philadelphia International Airport, according to the agenda.
Philadelphia is hoping to attract investors for the city, which is rated three steps above junk by Standard & Poor's. The city and its authorities have $8.75 billion in outstanding debt as of September, according to bond documents. Philadelphia's pension system is 47.6 percent funded this year, the documents say.
Tours of city assets are set for the second day of the conference, including the Philadelphia Gas Works, the largest municipally owned natural-gas utility in the U.S. The city plans to hire a broker to steer the sale of the system, which may fetch as much as $496 million, according to Lazard Ltd. (LAZ).
"It is a private meeting," said Mark McDonald, a spokesman for Nutter. Underwriters pledge to cover the $8,500 cost of the conference, he said by telephone. McDonald said the donors will be made public when the city receives the full payment.
"Given the state of the city's finances, perhaps the meeting should have been called 'Philadelphia leaders and investors look to hand bad debt off to a bigger sucker'," notes Tubbergen. "You know that city leaders are desperate for a solution when they're looking to sell a $500 million asset to help pay down debt of almost $9 trillion. While I didn't research it, that's likely not enough money to cover interest on the outstanding debt for just one year."
Tubbergen goes on to say that in a repeat of other stories he has discussed on his financial blog, the city's pension is also underfunded.
"This is becoming more common," states Tubbergen. "Since Janaury 2010, 33 municipalities have already filed for bankruptcy protection and there are far more that are insolvent that have not filed for protection."
Tubbergen's bottom line here?
"That's simply a symptom of the economic winter season in which we find ourselves," he concludes.
To read the blog in its entirety go to http://www.dennistubbergen.com and select his April 26, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at http://www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to http://www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.