The Muni Bond Market

You have to notice that there is no media comment on this collapse. If the media was being straight with us why not call attention to what looks like the beginning market wise of the end for Munis and States of the US zone.

Jim

The muni bond market reminds me of a police officer saying "nothing to see here" as he ropes off street access to a burning fire works factory.

The muni bond market is clearly in distress. California, the largest and arguable the strongest state economy in the US union, is in the process of testing the 2009 constant currency lows.

Pimco California Municipal Inc to Gold Ratio (PCKGLDR):


The national muni bond index has already fallen on its ass. The 2009 lows were breached in September 2010.

iShares S&P National Municipal (MUBGLDR):