Tuesday, July 31, 2012

Investigation of the Municipal Bond Market

As if we have not seen enough corruption in the financial system, there is a new investigation going on into municipal bonds. Basically, municipalities (local governments) issue bonds that are bought by investors in order to pay now for certain programs (like building libraries). The bonds are then paid off overtime just like a mortgage would be. The problem seems to be that there is very little auditing done of what the Cities claim. The issue explodes when a city defaults on it's debt.

New York Times - S.E.C. Suggests Reforms Of Municipal Bond Market

The general scope is over 3.7 trillion dollars. Lots of private investors like to buy municipal bonds because they have traditionally been seen as safe; however, there is the very real likelihood that cities have not been totally honest about their fiscal security. I seem to recall that recently some city in California was called to task for not giving accurate information in regards to their bond issuance.

If it turns out that the municipal bond system is rigged, things are going to get very interesting and cities will be unable to take on large projects that require bonding. This financial stuff is supposed to be boring; but, it just keeps getting more interesting in a bad way.

Iris I didn't have to wait in line

A couple of articles on biometrics and you. The first article has to do with travel, if you provide your drivers license and your passport to the airport, they will scan your iris and provide you with a new form of "secure" ID. With this new ID you will now be allowed to go to the front of the security lines.

CBS - DFW - Local - Iris Scan = Shorter Wait In Airport Security Line

The next article is about how a team of researches has been able to trick the iris scanners.

MSN - Your iris may soon be the target of identity thieves

In Arizona, police are now using Iris Scans to retrieve a persons criminal record.

Tucson News Now - Pinal County deputies use smartphone for crime fighting

On a side note, Apple has just bought a company that specializes in fingerprint identification. My father wanted to do this 40 years ago, I think he was ahead of the curve.

PCWorld - What Apple's Acquisition of AuthenTec Means

I think we are starting to see a trend here and it is one that I have been writing about for years. In order to use your cell phone or the internet, you are going to eventually have to have your biometrics scanned and verified to be you and your phone is going to be how you pay for things, at least for awhile.

In the future you will not be able to travel without your identification being verified.

Khaleej Times - Two jailed for trying to cheat in iris scan