It’s like something out of the real estate crash a few years ago. So back in the 90′s Big Tobacco settled with states to give them a piece of future revenues as penance for the damage they had already done and would continue to do. Those states sold bonds that would pay out as long as tobacco kept making money — and tobacco has always been a safe bet.
But the rapid introduction of a competing product to a space that never really had one before is putting these bonds at risk. Since the introduction of electronic cigarettes to the global market, tobacco sales declines — which had stalled in more recent years — are on a renewed path downward. Well Fargo has even claimed that e-cigs may well surpass tobacco cigarette sales inside the next 10 years. That would take roughly $45 billion a year away from the revenues subject to the payment of those bonds.
Great read by ecigadvanced. Click the link below to read the whole article.
http://www.ecigadvanced.com/blog/e-cigs-are-so-killing-tobacco-that-they-may-be-ruining-tobacco-settlement-bonds/
My take on it? SPOT ON! of course vaping is cutting into tobacco sales. Thousands and thousands and THOUSANDS and THOUSANDS of people suddenly making the move away from tobacco to vapor will make a huge dent in sales. Huge dent in sales = huge dent in tax revenue = FDA getting involved to recoup those loses... now let me take my tinfoil hat off.
-Grimm