Thursday, August 1, 2013
As the news feeding frenzy has begun to focus on the $18B Detroit bankruptcy filing on July 18, 2013, it is time for investors who have exposure to the market, or are thinking about taking on new positions to get a better understanding of what is happening in this game. There are countless headlines about the impending doomsday for municipal bonds driven by the underfunded pension system for public workers in many municipalities across this country. I would say that this is not really new information, but it does make good conversation. But, this conversation is impacting the market, so it is a good idea to understand why, and whether you should be bailing out before financial Armageddon, or looking for opportunities that are being created by the fear mongers.