This article states what I feel, which is that we’re in a long term bear market, but we’ll have years that are good (like 2009 and 2010).
Secular bears end when the excesses that caused the prior bull are extinguished.
I’m not convinced we’ve addressed the excesses yet.
We’re now seeing the worst falls in Municipals since Lehman’s collapse back in September 2008. Ouch! I also say that the worst is before us, not behind.
To do: Watch your municipal holdings and know what your exposure is!
Ireland has a bailout (thank you EU and IMF) and now the yields for Portugal, Spain, and Italy are going through the roof.
This does NOT bode well for the rest of the PIIGS, Europe, and the Euro.
To do: What’s your exposure to what I think is the next big collapse?
CLICK FOR FULL ARTICLE: MUNIS SEE WORST FALLS SINCE LEHMAN COLLAPSE
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 .
What? Isn’t the FDIC broke already?
Yes, but why let that get in the way of a government (or quasi-government) policy.
This coverage amount will last until the end of 2012.
CLICK FOR FULL ARTICLE – BROKE FDIC EXPANDS CHECKING INSURANCE
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.