Caution, Watch Out Muni Bonds !

B

bgp

the next domino to fall will be muni bonds. these cities and towns will be losing out on alot of revenue from R.E. taxes. , because of defaults.

bgp
 
dollar devaluation is the path of least resistance. rich get richer, the destruction is difficult for ordinary people to understand, politicians don't have to make a stand, keep printing spending and promising, etc

i'd expect the left/right political establishment to play that card to the point of destruction. it's just too large a problem for any mainstream politician to take a stand on. presumably it will change when the damage is literally in-our-faces-unignorable and the majority literally can't afford to continue

politicians might prolong monetary dilution with synthetic war and fear. seems almost too textbook to be true, but also seems to be the path we're all on. i hate to be so simplistic, but i believe it is that simple

default seems less likely than bailouts. i'd be impressed if it went the other way
 
Quote from bgp:

the next domino to fall will be muni bonds. these cities and towns will be losing out on alot of revenue from R.E. taxes. , because of defaults.

bgp
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What about government bonds? Will they be next?
 
Quote from gkishot:

What about government bonds? Will they be next?
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Government bonds will NEVER default!

The gov't owes these bondholders <b>dollars</b>, not <b>money</b>. The printing presses will still work just fine, no matter how weak the economy & dollar become.

I made a post last year that many of you didn't really understand. I think it'll be far better appreciated this time around:

From the thread: "What is a Dollar?" http://www.elitetrader.com/vb/showthread.php?s=&postid=1023231&highlight=dollar#post1023231
Quote from Rearden Metal:
03-28-06
In the early days of the U.S.A., every dollar was exchangeable for 412.5 grains of 90% silver. Paper money was merely a conveniently portable 'place holder'. It was a certificate of entitlement to precious metals held by the U.S. Treasury.

Up until 1933, a U.S. dollar represented a fixed amount of silver or gold. During the Great Depression, the government stopped this- but still, one could always exchange paper dollars for silver coinage.

In 1965, the government stopped that too. <b>At that point the dollar went from currency to illusion.</b> Since people were already <i>used</i> to accepting paper dollars as currency, they kept doing so, purely out of habit. If the dollar had started out as the unbacked paper it is today, it never would have gained widespread acceptance in the first place.

It isn't money anymore, but rather a temporary psychological trick.
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Quote from frank grimes:

sherlock holmes????
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lol i know i know. not exactly world class sleuthing and yet it still feels like it needs to be said. maybe there's a more constructive place to discuss it than with professional market watchers and skilled cynics
 
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