mrbill

Tax-Free Muni Bonds: Respect the Yield Curve

"Most municipalities, I’m told, would rather fire employees, freeze wages, cut services, basically use every other tool in the box before they turn their back on bondholders."

With our bailout nanny state mentality that's no longer the case. Just ask the auto mfg bond holders. According to Barack Obama, they're just "rich speculators". Rest or unrest assured, bond holders will be left holding the bag this time around. Either through a reduction of principle (cramdowns), monetization of debt, and perhaps a new federal tax on munibonds. Build America Bonds are a first step in this direction.