Why would you buy a municipal bond???
As some of you know, credit creation and spending drove our economy for the past twenty years.
Municipalities borrowed trillions and spent the $$$$ supercharging our economy.
Looking at Cities, Counties, and States currently....more and more are having a difficult time servicing debt and paying employees at the same time. Now that tax receipts are evaporating, who in their right mind would loan money to a municipality?
If they can barely cover their existing debt service with existing revenues, how could municipalities cover more debt with less income?
Detroit is on the brink of bankruptcy. So are many cities in California. Jefferson County Alabama is on the brink and Philly is really chilly these days.
It is amazing, America is debating health care while our municipalities are imploding and few are commenting.