ajtj99's Market Pulse

[rich ruscio]

Depends what you want to believe about the state / local / muni bond markets. Choices:

1) Nothing - gov't bonds are as worthwhile as ever
2) Market seizure - mostly these are sold to pension funds, income funds, and Aunt Minny's. They can stop buying, but they really can't - see US Treasuries. Does anyone trade these things normally?
3) Issuance failure - gov't can't sell debt - most states and counties and cities would stop dead in their tracks. That's not going to happen.

Monoline insurance will become a "not a hard requirement", and borrowing costs will change a little.

Of course, I might be wrong. Want a pony?

rr