BondGuy

Why the Muni Bond Market Is in Decline

If this were a risk aversion story, munis would be outperforming corporates, which are far riskier. The muni problem is largely a liquidity story. TARP has been handled by idiots, who have chosen not to do the single most helpful thing they can do to save jobs and economic activity, which would be to support normal state government spending which has been killed by the non-functional muni market.