AUCTION-RATE SECURITIES are debts that mature 10, 15 or 20 years in the future, but which change hands frequently -- as often as every seven, 28 or 35 days. The interest rates on the securities change with each auction. Lately, bidders have been scarce or nonexistent for some of these auctions, drastically deflating the value of the securities.
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Who’s got the power? It’s one thing to have it when there’s lots of money around and a much different thing when money is constrained.
