For what it’s worth, I heard a radio interview with Steve Forbes last month and he pretty much agreed with the author of this article. He said the municipal bond market is in for some bumps, but he doesn’t foresee a catastrophe like some people are predicting. His advice was to be well-diversified so that problems with individual issues don’t have a major impact on your bond holdings.
I’m certainly not pro-0bama and I believe the hysteria over muni’s is overblown. The next 6 to 12 months may be good to muni’s.