Immigration & the Municipal Bond Market

While the nation performs our twenty-year cycle hand wringing penance about immigration and pretends that it's the first time in its history its faced this problem maybe the rest of us can have a civil conversation. For those of you who can discuss this topic like adults without stooping to phrases such as "border fences", "identity cards" or "filthy Papists", come in and enjoy the fresh smell of reason baking on the warm oven of facts served on a plate of truth.

Cities with higher populations of immigrants do better in the municipal bond market than cities that do not. Three of the top municipal bond funds feature California and New York, states with cities that have 5 of the top six highest immigration populations. We at TORC believe there is a correllary (not necessarily causal) effect, but one which is worth examining even as an indicator. And here are the reasons we believe this is so.

1 - Cheap labor: It's the dirty secret of American history that we may not have come so far so fast if not for the whole slavery thing. Could you imagine if this country had unions in the nineteenth century? I'm pro-union, but let's face it, if you're building a nation the first thing you want to do is increase your exports cheaply and fill your coiffures. One of the first things Hitler did to increase productivity was break the unions. Immigrants who come here will work for less and suffer longer hours which creates more wealth for companies. Yes, it's disgusting, but when you're playing the muni bond market, the games the game.

A petri dish of
superhumans!

2 - Diverse populations: Darwin has explained to us that the strongest species are the ones that adapt and cross-breed. It weeds out the weaker genetic flaws by mixing the strongest of two different types of strains. When you introduce a new type of DNA into any pool, what you get is a blend of the best. And this isn't limited to just the atavistic principles of breeding, but also food, music, architecture, and ideas. Take for instance when the filthy Irish came to this country, they brought to our shores the gift of literary appreciation and wholesale grifting. The Italians brought with them opera, exquisite food, and the drive-by shooting. When a city opens its doors to immigrant populations, it's also opening its door to ideas and ways of doing things that will only create a stronger, more vibrant eco-health.

3 - If you can't breed them, buy them: The entire American economy is based upon one simple fact: if people stop buying, we die. Remember 9/11? The message wasn't "Loose Lips Sink Ships" or "Buy Bonds", it was "For the love of God, buy something! Anything!" America needs to repopulate its consumers and currently the industrialized nations of the world are not keeping up with replenishing. We're lucky because we can just turn on the immigration faucet and repopulate whenever we want to! This in turn creates a functioning economy and those cities that have immigrant populations, see the benefits of that first.

So go out and hug an immigrant! Make a baby with one and enjoy their economic and carnal fruits!

Stock Watch: TORC stocks took another dip due to a slight depression and overwhelming work load. Share Price: .97