After an unusually large inflow of investors, Mini Bonds tanked. How could they go from most loved to mosthated?
After Meredith Whitney called for all the municipal bonds to collapse two years ago, they in fact, didn't and investors piled in for the rich tax-free dividend. Last week, Ms. Whitney went double down on her call of the collapse of the municipal bond market as reported by the Wall Street Journal.
We did see Harrisburg, PA and other municipalities file for bankruptcy. But they restructured and have moved on. This is not something completely out of the ordinary. Just as businesses file bankruptcy and restructure in normal economic times, so have municipalities. Rarely do they catch the attention of the national media. Even New York City has gone though crisis like this, and as of the last time I checked, they're still open for business. If only Greece knew this.