Comments on: Buffett On Municipal Bond Risks

By: Bonds talk

Bonds talk — Wed, 08 Sep 2010 13:34:53 +0000

I still believe that municipal bonds are a pretty safe option to investing.

@Robert
I don’t believe California should not be allowed to default. If a State defaults it does not mean that its debts are going to be wiped. It still has to pay everything it owes + expenses to investors.

By: Brandon B.

Brandon B. — Tue, 10 Aug 2010 03:59:06 +0000

I agree with Robert, peolpe just don’t see the help out there.

By: Joe

Joe — Sat, 31 Jul 2010 06:27:57 +0000

Buffet has been warning for years to anyone who would listen. Unfortunately those that should listen are sociopaths and only concern themselves with what concerns us to gain political favor, not to solve actual problems.

@Robert
Unfortunately State’s receive HUGE federal government assistance right now but most people aren’t paying attention.
Just a few examples:
- Military equipment provided to State, County and City Police Departments
- The 90/10 match on new Medicaid systems
- Federal grants to State and County agriculture offices. Granted the employees of those gov offices have to apply but most that I know do.
- and the list goes on and on, watch the news and listen closely…your eyes will be opened.

Do I agree, not a chance but unfortunately most people don’t care enough to stop the hemorrhaging and will instead complain how the feds aren’t doing enough.

By: jim

jim — Thu, 29 Jul 2010 11:15:00 +0000

One man’s garbage is another man’s gold…. With income taxes going up, the last great tax shelter is the muni bond. That said, the current muni market certainly feels like a bubble.

Warren Buffet says an asset is worth what someone is willing to pay for it. That theory can finally be reflected in credit ratings based on market prices rather than on the conflicted opinions of Moodys or S&P. But the reality is to expect more muni defaults due to inflated credit ratings, lower tax revenues, budget deficits and headline risk.

Markets have the intelligence to predict bad news thru market price based rating systems. To see Market Ratings for all all muni bonds go to http://www.bondview.com/marketratings. Its like a Morningstar’s Xray for stocks but instead for muni bonds.

???Jim Walker
?www.BondView.com

By: Jenna

Jenna — Tue, 27 Jul 2010 23:24:34 +0000

Oops…my comment was suppose to go to the blog post below this one… My bad!

By: Tony

Tony — Tue, 27 Jul 2010 23:23:31 +0000

Jenna, I think you have figured out the solution to the state and municipal bond default risk!

By: Jenna

Jenna — Tue, 27 Jul 2010 18:44:06 +0000

I hardly use any soap (lowest line on those little cups that are provided). Plus using cold water saves a ton of money. But it goes beyond just laundry soap, most dish washers only need a tablespoon of soap, not the whole unit being filled. And body soap (a little gross I know) doesn’t need to be POURed onto a loofah to do a good job.

By: Robert

Robert — Tue, 27 Jul 2010 12:58:53 +0000

California should be allowed to fail and be used as an example of how NOT to run a government. The US government is on the same track with no one to bail us all out. I don’t see how the US government (read “We the People”) can be expected to take on the debt of states when right now the deficit is as much as 1.5 TRILLION dollars. Where the hell will the money come from? Printed or borrowed, either way it’s bad.

You make your bed, now lay in it. If your state (and this is any state) has to file for bankruptcy and default on it’s debts then so be it. At a very minimum, no state should be allowed to receive 1 dime of federal money to stabilize itself until it has taken drastic steps to fix the root cause of it’s problems. And I mean DRASTIC.