From Bloomberg's chart of the day, reflecting the massive lag in muni weakness compared to the compost heap that is the general economy.
Bloomberg had this to say:
This year, 16 municipal issuers have failed to make payments on $426 million in bonds. In 2008, 140 issuers defaulted on a record $7.6 billion.Among the latest to default: the Memphis Redbirds Foundation, which in 1998 sold $72 million in sports facility revenue bonds to help pay for a minor-league baseball franchise and a 14,000-seat stadium in downtown Memphis.Since 1999, issuers have defaulted on $24.13 billion in municipal bonds out of a total of $3.4 trillion issued, according to Thomson Reuters.
Good thing all those wraparound bond-insurance companies are alive and cracking... Oh wait, producer telling me... what's that... oh... really... hm.... well that's just not good now is it.
Hat tip the irish, er, scottish, dude