Muni-phobia

Wish I would have had more space to deal a bit with the bond insurers who also stand to be on the hook if/when these munis start melting down... Who knows, maybe that's another article all on its own!

The ticking clock is a great device for creating dramatic tension on screen. You might get up to go get a snack when the lead actors are emoting, but nobody leaves when there is three seconds left on the device that is going to explode. Maybe that is why there is so much fuss in the financial media about the impending detonation of the municipal bond market. 

Safe and Sleepy... UsuallyIn normal days, municipal bonds are arguably one of the sleepiest and most boring segments of the financial marketplace. Munis are bonds issued by communities or enterprises to pay for things like roads, hospitals and schools. So dull are they that there is typically no active quotation system for them - they trade seldom enough that you have to call your broker, who will then call around to get bid/ask quotes on the bond. (For a quick refresher, check out The Basics Of Municipal Bonds.)
Now, though, that may be changing. 


For the complete column:
http://stocks.investopedia.com/stock-analysis/2010/Muni-phobia-MCO-MHP-BAC-C-BCS0623.aspx