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[quote=Anonymous][quote=Anonymous]DC's bond rating is AA+. DC's GDP per capita ranks #1 at $229,802. DC has it's problems, but it's a pretty well run district compared to Alabama, Missouri, or Texas.
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You don’t know what the bond rating means. DCs GO bonds are have an investment grade rating because DC has agreed to effectively a private sector fiscal control board. All DC income tax revenue does not go directly to the DC treasury, like it does for normal jurisdictions. Instead, it goes directly to a bond agent who uses it to pay bond holders and then once bond holders are paid in full, the remaining funds are transferred to the DC treasury. The analogy is that your credit card company is garnishing your wages and getting paid first directly from your employer. It seems odd that people would be more comfortable allowing Wall Street bankers to have unprecedented control over DCs finances than elected officials.

Second, without this arrangement, DC bonds would not be investment grade. DCs fiscal position is not sustainable. DC has some of the highest per capita public debt levels in the country which is compounded by declining population growth. The writing is on the wall. [/quote]

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