Thursday, November 18, 2010

Meredith Whitney on the Coming Collapse of the Muni Bond Market

The entire multi-trillion dollar sector is going down.

You will not want to own any municipal bonds after watching this video.


  1. What's the best way to short CA munis? Or do you just have to short munis as a whole?

  2. Muni-bonds are the biggest, best and longest running tax shelter for the extremely wealthy. There is no way the oligarch will allow the muni-bond market to collapse (not without a big fight anyway). Doing so would wipe out the fortunes of many of the wealthiest American families. Its not uncommon for the retired/inactive wealthy to park 90% of their accumulated fortune into muni's. Trust funders living off of great grandpa's fortune would be hit even harder since muni's are typically the preferred investment of their trust fund so as to avoid the high income tax rates levied on trusts.

    How ever this plays out, it should make for some great EPJ fodder.