Any plays on defaulting state governments? Prison stocks?

Discussion in 'Stocks' started by Jumpshot, Jul 1, 2009.

  1. Jumpshot


    Any plays out there on defaulting state governments? I was thinking prison stocks. I read that Arnold is going to release 10,000 prisoners and cut back on the prisons. Any stocks out there that depend upon the state governments?
  2. Eight


    Buy some marijuana, Arnold was talking about legalization, if it goes up sell, if it goes down, smoke it, either way you feel good...
  3. drcha


    Good question, thanks for posing it.

    And just off the cuff--

    What about a short play on infrastructure? Maybe the states will wait one more year to fix those potholes.

    Here in Washington state, which is not as badly off as some states, they are doing a bunch of freeway work and putting in some light rail. I'm not sure which big engineering firms would be involved in these types of projects. But presumably similar projects elsewhere will be put off. So maybe there are some shorts there.

    Or, keep an eye on MUB. Perhaps we can short it soon--the 50 day has made a U-turn.

    Just some thoughts.