Posted on 12/17/2010 9:52:56 AM PST by FromLori
Muni bonds don't exactly turn heads when times are good. But lately they are getting a lot more attention than their embattled fans would like.
After rising through the first 10 months of 2010, the average municipal bond fund has lost 3% in just the past month, according to TrimTabs. Some funds have lost 10% or more this fall, as the long bull market in Treasury debt has come up lame and worries about stretched state and local government budgets have started getting more attention.
Muni funds have suffered outflows in five straight weeks, with $9.3 billion in investor funds taking flight. Managers who had been rolling in new money are now struggling with "a huge shot of redemptions," says Alex Grant, manager of the $300 million RS Tax-Exempt fund.
Worse yet, he says each new report of outflows brings out more sellers, adding to the sense of building panic. "There is a ton of headline risk out there right now," he said.
(Excerpt) Read more at finance.fortune.cnn.com ...
I’m reminded of a (locally) prominent financial adviser telling her clients to invest in muni’s because the “Federal Government will never let _____ go bankrupt.”
Be careful if you listen to this guy, We the People are on the verge of REPUDIATING ALL GOVERNMENT DEBT. Not to mention the Entire Ponzi style credit money system using fractional reserves is on the verge of OUTRIGHT COLLAPSE.
I don’t trust the Fed, the Banks, our Govt. and I think we should have let the Banks fail like the Icelander’s did they are already on the road to recovery. I particularly hate that the Fed and a group of unelected global bankers were allowed to mortgage our children/grandchildren with the bailouts. I think we should abolish the Fed and I hope we do repudiate the debt and I also believe we are on the verge of collapse.
Those liar’s they knew about the World’s economy six months earlier then we were led to believe. I am disgusted beyond words that American taxpayers backstopped the global banks. They were allowed to wipe out their competition to boot witness all the smaller American Banks that have failed taking jobs with them.
US embassy cables: Mervyn King says in March 2008 bailout fund needed
“King suggested that the U.S., UK, Switzerland, and perhaps Japan might form a temporary new group to jointly develop an effort to bring together sources of capital to recapitalize all major banks. END SUMMARY
Systemic Insolvency Is Now The Problem”
http://www.guardian.co.uk/world/us-embassy-cables-documents/146196
Insolvency?? We have been Insolvent and Bankrupt since August 15 1971 when Nixon Closed the Gold Window, and the credit money scheme using fractional reserves was put into full force. Remember, ALL MONEY IS LOANED INTO SOCIETY, only the principle is loaned into society with interest added. Where does the Interest come from?? it comes from more borrowing, which is why I absolutely laugh whenever anyone even mentions PAYING OFF THE NATIONAL DEBT. We could not and cannot EVER PAY DOWN THE DEBT let alone pay it off. If All Debts Public and Private were PAID OFF TODAY, There would not be one single federal reserve credit or dollar in existence, but we would still The Federal Reserve Banks Trillions of Dollars in Interest, that DO NOT EXIST. Where does the Interest Come From When ALL MONEY IS LOANED INTO CIRCULATION?? Have you ever heard of PONZI??
Even if true the value of your munis will go down so if you want to sell them to buy another investment you are screwed
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