U.S. Muni Bond Market Debt Default Tsunami
Interest-Rates / US Debt May 26, 2012 - 12:57 PM GMTThe front edge of the coming bond default tsunami is clearly visible in our discussion of the burgeoning credit crisis in Europe. Less publicised, but every bit as important, is the debt burden that is smothering U.S. municipalities. CTC warned that muni bond tax-exemptions would "ultimately trap investors into a risky position," and EWFF has continually stated that defaults will rise as cushy municipal pensions and health benefits garden a bigger share of a decreasing tax base.
In December, EWFF identified the largest municipal bankruptcy in history - Jefferson County, Alabama - as an important harbinger. On Tuesday, administrators of Alabama's largest county said... continues in the May issue of EWI's Financial Forecast 10 page report available for FREE.
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