Dave, but if those munis default, I’m guessing it’s gonna have a seriously bad effect on interest rates of all munis. Not good for munis going forward.
And that’s what we call a “BUYING OPPORTUNITY.”
In fact, I’ve already started to buy these as I spoke about yesterday because the market has been discounting this event since Meredith (I too was also right once) Whitney came out a few months ago with the same prediction.
You can get a great bunch of Mini ETFs from Nuveen..www,nuveen.com
I bought NEV and will likely buy a few more (slight diversification but perhaps not even necessary) in the next few days.
Dave, but if those munis default, I’m guessing it’s gonna have a seriously bad effect on interest rates of all munis. Not good for munis going forward.
Reading the Roubini report now…..they are suggesting that out of the $2.9 Trillion state & local government bond market that PESSIMISTICALLY, $100B might default…3.4%!!!!! Additionally they say that because of the historically high rate of principal repaid on distressed munis, losses would only amount to about $35B.
I need to take some amoxycyllin. No biggie. Infection with various consequences, including the coughing fits, which made it seem like a much bigger deal than it turned out to be. Now I feel like a big pussy for staying home and going to the doctor.
Nouriel Roubini said blah, blah, blah.
He was right once(like most economists) and now he won’t shut up.
Proves that he hasn’t much clue about how muni market works.
Shame on WSJ as well. The market has already discounted Meredith Whitney’s doomsday prediction (another who got one right).
By jessibaby on March 2, 2011 3:04 PM
Dave, but if those munis default, I’m guessing it’s gonna have a seriously bad effect on interest rates of all munis. Not good for munis going forward.
And that’s what we call a “BUYING OPPORTUNITY.”
In fact, I’ve already started to buy these as I spoke about yesterday because the market has been discounting this event since Meredith (I too was also right once) Whitney came out a few months ago with the same prediction.
You can get a great bunch of Mini ETFs from Nuveen..www,nuveen.com
I bought NEV and will likely buy a few more (slight diversification but perhaps not even necessary) in the next few days.
aren’t most muni’s insured against default? or the insurers POOP now and cant be expected to have ability to payout in event of default?
lechacal, I think you deserve the GOTD award for staying home and whining so much about your cough…or at least the POTD award.
Dave, but if those munis default, I’m guessing it’s gonna have a seriously bad effect on interest rates of all munis. Not good for munis going forward.
Reading the Roubini report now…..they are suggesting that out of the $2.9 Trillion state & local government bond market that PESSIMISTICALLY, $100B might default…3.4%!!!!! Additionally they say that because of the historically high rate of principal repaid on distressed munis, losses would only amount to about $35B.
THIS IS A TOTAL NON-EVENT PREDICTION.
thanks, m4l. I’ll send that info to my friend – she wants a mortgage and I wanted them to get in touch before she goes with someone else.
JB, Adam said he’ll drop soon (wrapping up some stuff). if he doesnt show up soon enough for your liking, you can hit him up at:
adahill
at
wcslending.com
I need to take some amoxycyllin. No biggie. Infection with various consequences, including the coughing fits, which made it seem like a much bigger deal than it turned out to be. Now I feel like a big pussy for staying home and going to the doctor.