Two Fresh Headlines To Scare The Living Daylights Out Of Muni Investors

Munch Scream


Another night, another pair of headlines that won’t help the muni bond flow situation.Exhibit A: NYT: State Bankruptcy Option Is Sought, Quietly.

Basically at the behest of Newt Gingrich, Senators and Congressmen in DC are looking for a new law that would allow states to declare bankruptcy and restructure their debts including to (actually especially to) unionized public workers.

Exhibit B: Reuters: California Governor Declares Fiscal Emergency.

Well, that one’s kinda obvious, no?

So yeah, expect this chart to get even more dramatic.

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