[[wysiwyg_imageupload:874:]]By David Galland
It’s an overview of the escalating deterioration of municipal debt markets, and the concurrent increase in the likelihood that the Fed will again be called in for a bailout. There is also a link to an article on the topic from the New York Times that is worth reading.
Here’s a quote:
The problem is state debt. New York, California and Illinois look more like Greece to their bondholders every day. Since the November elections, investors have been dumping their bonds, and hedge funds are betting against them, perhaps realizing that a Republican House is not going to offer generous, condition free bailouts.