States/Municipalities the next crisis to come
I'm surprised how much investors have been focusing abroad in the international countries, when there is a crisis brewing right now with states and municipalities. Many states are facing massive budget gaps and tax revenue downfalls.
As a Government employee, my current state is facing a 11% tax revenue downfall prior year comparison. There's no point in worrying about Greece, when a massive problem exists at home. Fortunately my state has not done furloughs, however; just about every other state has. Hawaii is tearing a page out of California's playbook and delaying tax refunds until late July no matter how early they were filed.
Illinois's state pension is collapsing and has been for quite sometime. The only way to keep it afloat is to issue more bonds.
This is starting to come to light, but I expect it to continue to exacerbate much further as time progress. Greece is hardly a problem in lieu of what is happening domestically.
I hardly think municipal bonds are the 'sure thing' contrary to past beliefs. The insurance companies backing them are bankrupt themselves (aka MBIA/Ambac).
Indexes (S&P 100,400,500,600), (Russell 2000) are the place to be. At least that is the closest thing to 'safety' IMO that you can get. Plus you can short options against them, while collecting premium and capital appreciation.