Thread: Muni watch
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Old 04-24-2011, 05:38 PM
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Mary Pat Campbell
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Join Date: Nov 2003
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Considering making muni bonds taxable - as Girard Miller of Governing Magazine notes, this proposal is DOA, but Miller tells the munis to consider this...because they're going to need all the financing options they can get.


Fed claims muni bond defaults unlikely. I don't exactly disagree, but I think that the munis are going to find a tough time of it in rolling over their bonds or issuing new ones. The power to tax isn't infinite, especially when one's population keeps moving away (ask Detroit about that). Here's the Chicago Fed letter on this.
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