It's no secret to regular EPJ readers that the muni bond market is a scary place to be, with the potential for many bankruptcies. But it is unusual for the head of a money center banks to give out such a warning, but that is exactly what JPMorgan Chase CEO, Jamie Dimon, has done.
“There have been six or seven municipal bankruptcies already,” Dimon said yesterday at his company’s annual health-care conference in San Francisco, according to Bloomberg. “I think unfortunately you will see more.”
“If you are an investor in municipals you should be very, very careful,” Dimon said at the conference.
Liberty Mutual Holding Co., the policyholder-owned insurer, reduced its holdings of municipal debt in Connecticut, California and Illinois.
ReplyDelete“The market is being held up to some extent by the belief that the federal government will bail out” state and local issuers, Chief Executive Officer Edmund “Ted’’ Kelly said today in an interview on the sidelines of a conference in New York. The insurer still has holdings in each of the states, he said.
http://www.bloomberg.com/news/2011-01-11/liberty-mutual-reduces-muni-debt-holdings-in-three-states-ceo-kelly-says.html
The states will be bailed out just as everyone else has been bailed out.
Why unfortunately? These taxtaker government parasites who live off the backs of the productive should starve...if we are fortunate.
ReplyDelete"The Obama administration is eying a secretive tax deal critics charge is an indirect bailout for Puerto Rico to the tune of billions of taxpayer dollars."
ReplyDeleteRead more: http://dailycaller.com/2011/01/11/thedc-exclusive-a-secret-6-billion-bailout-for-puerto-rico/#ixzz1Ar1uB800