The crisis at-hand is overshadowing the one that might be.

Florida's financial investors have, for now, pulled the plug on a $7
billion bond sale meant to raise cash for potential hurricane claims,
citing "current volatile conditions in global financial markets."

The State Board of Administration had hoped to make the sale of
floating rate notes by Sept. 1. They would have added liquidity to the
Florida Hurricane Catastrophe Fund, giving it more time to pay hurricane
claims before having to go to the market to borrow money in the wake of
a storm.

The SBA had already issued a preliminary memorandum of the sale, but
on Friday posted a short statement saying the deal is on ice. "The state
will continue to evaluate market conditions and access the market as
conditions normalize," the agency said.

The potential that Florida can't sell such bonds -- before or
especially after a hurricane -- has given jitters to financial rating
firms examing the state's property insurers.