Munis Crashing For Third Straight Day, And This Is The Worst Yet
It's hard to look at this chart, and not have your heart skip a bit of a beat.
For three days now, munis have tanked, and this is the worst one yet.
My thought: Falling muni-bonds means that state and local authorities are at the end of their rope and will find it much harder to fund their activities via further debt. A logarithmic sudden decline might force some into bankruptcy - as is the case with any indebted entity looking to refinance right when it's credit rating is crumbling.