One of the effects of a US Government downgrade is a municipal downgrade to follow. If you’ve been following my newsletters over the past few years, you know I’ve advised you to watch your municipal holdings closely if you have any at all. The free (relatively) capital market ultimately determines the cost municipals will have to pay to borrow money. Municipals to be Downgraded? – Link Read More
If the US Gov’t is downgraded (I argue when not if) then 7,000 municipal bonds will be automatically downgraed as well. At least according to Moody’s. This really hurts retirees as they’re the largest part of this market. 7,000 Muni Bonds at Risk of Automatic Downgrade — Link Read More
The 2nd Quarter 2011 is over and I have a slightly longer video this week because I include my preview for the 3rd quarter. I talk about what I think of the current economic environment, bucking the trend on some of the pessimism I hear and read about so much anymore. I send my newsletter and videos on a weekly basis, so if you watch only a few througout the year, at least watch my more comprehensive quarterly videos. Click to watch TRANSCRIPT: Hi! Welcome to the Generosity Wealth Management Video. This video is the second quarter review and ... Read More
I’ve been negative on the finances of state and local governments for some time, and continue to believe it will get worse before it gets better. This article takes a contrarian view, particularly on the debt, which I want to present to you. He argues there are “diamonds in the rough”, which is almost always true. I’m still quite negative on municipals in general, but it’s good to see the other point of view. LINK TO FULL ARTICLE Read More
If you’ve been listening to my videos and reading my newsletter, you are minimally affected by the Municipal Bond declines over the past 2 months. Yeah! Outflows are huge right now and I anticipate they will continue while states determine how to balance their budgets. To do: Continue to avoid Municipal Bonds unless you’ve really done your homework CLICK FOR FULL ARTICLE – MUNI FUND OUTFLOWS Read More
2008 and 2009 were devastating to state revenue, so in comparison to those hard years, 2010 showed an increase AS A PERCENTAGE from the previous year. Revenues are still way down, and without the big influx from stimulus money the worst is yet to come. CLICK FOR FULL ARTICLE – MUNICIPAL REVENUES REBOUND Read More
I’ve been warning about the municipal bond market for some time now. I think the problems are starting to hit and 2011 will be a big year of reckoning. Look at the chart to the right. Ugly. Why is this happening? There’s the looming end of the Build America Bonds program, questions about how state and local governments will manage their debts, and the impact of huge pension and health care obligations that seem unsustainable. CLICK FOR FULL ARTICLE: WHAT’S WRONG WITH MUNI BONDS? EVERYTHING . Read More
Ireland is in preliminary talks with the EU for a Greek type bailout. Wonderful. Remember that the PIIGS countries are Portugal, Ireland, Italy, Greece, and Spain. Two down, three to go. Like municipalities (see above) they’re going to continue to have problems in 2011. CLICK FOR FULL ARTICLE: IRELAND IN TROUBLE Read More
The reason I include this article is to reinforce my belief that Municipal Bonds are something to avoid. State pensions are in a world of hurt, and you and I will be subsidizing them in the future. Do you think this will cause some slowdown in state revenues and resources? Of course. Please click for Full Article Read More
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