Why is MBIA controlling the city of Pittsburgh? More importantly how close is MBIA coming to controlling your city or state? Caught this on Karmabanque. MBIA is collateralizing its bonds with crack houses and holding the city of Pittsburgh at bay.

"There are thousands and thousands of liens in excess of market values" in Pittsburgh, said Kendall Pelling, planning and acquisition coordinator for East Liberty Development, a nonprofit that builds affordable housing. MBIA needs "to look at the portfolio very hard and make some decisions," he said.

MBIA's bonds are connected to Pittsburgh's blight because the company controls about three-quarters of real estate with tax liens in the city. Nothing can be done to improve the properties until the bills are paid or MBIA writes them off. The company still expects to collect $40 million on the liens by the time the bonds mature in 2008. Article

The ability of a private company to control the development of city can’t be a good thing. Isn’t a good thing. It’s a pattern of gentrification that threatens to sell off entire neighborhoods at wholesale.

What about Shoshone Land Grab?