As we ponder the Manny crisis, let's not lose sight of the fact that there's another crisis still out there:
Municipal bonds sold in 2006 to finance the New York Mets' Citi Field may be cut to speculative grade, or junk, status by Moody's Investors Service after the surety bond provider, Ambac Assurance Corp., was downgraded.
Moody's placed about $613 million of Queens Baseball Stadium tax-exempt and taxable bonds sold through New York City's Industrial Development Agency under review for possible downgrade. The debt, rated Baa3, the lowest investment grade, is backed by payments in lieu of property taxes, or Pilots.
I suppose the Mets don't care. They got their stadium out of it. If these bonds don't sell, however, it will end up having cost the taxpayers of New York a lot more than they bargained for. Or, more to the point, didn't bargain for, as the city's new stadium projects were basically forced down their throats.