Bad News From Florida

This from Naked Capitalism…

The debacle in Florida, namely a $27 billion short-tern investment fund being frozen after the revelation it held $700 million of defaulted debt (today reported as $900 million) led to $12 billion in withdrawals, is producing a cash crisis at the government entities that hadn’t gotten their money back.

Aside from the troubles this impairment is creating in and of itself, it will feed “run on the fund” behavior if any other government-operated funds encounter similar difficulties.

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