Muni Bond Crisis May Be Similar to Euro Zone: Strategist

Not may be but rather is similar. Aside from the currency that denominates the debt and the accounting tricks used to hide the insolvency, the bond crisis in the US Union is the same as the Euro Zone.

A crisis in the municipal bond market in the US would be similar to the one sweeping through the euro zone now, Steven Major, global head of fixed income research at HSBC, told CNBC Wednesday.

Analyst Meredith Whitney warned that a wave of defaults by state and local governments is coming and will cause a selloff in the municipal bond market.

"In a way it's the same kind of thing (as the euro zone crisis)," Major said. "The concerns are about the solvency risk for 2012."

Source: finance.yahoo.com