How Detroit’s bankruptcy impacts The World Trade Center in New York

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Silverstein BurgerJanuary 29, 2014- The WSJ reports that WTC developer Larry Silverstein wants a sweeter financing deal to continue WTC Tower 3, and wants the government to give him more Liberty Bond cash, which comes at much cheaper interest rates than private equity. The problem is that the demand for municipal bonds is down, in part, due to the elevated risk caused by the Detroit city bankruptcy, and impact on their municipal bonds.

The WSJ wrote, “But the muni market also is no sure thing. It suffered last year due to rising interest rates, Detroit’s bankruptcy and speculation of a Puerto Rico debt restructuring. Investors withdrew $63.5 billion from muni-bond funds during the year, the most since fund tracker Lipper started recording the data in 1992.”

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