Archive for the 'Muni Crisis' Category

I’m even more convinced that Meredith Whitney and other doomsayers are full of crap in regards to the impending “muni crisis.” I just read these two posts:

• “Meredith Whitney and the muni fifth dimension” – ft.com/alphaville
• “Far from the madding crowd” – Self-evident

Things are rarely ever as horrible as they seem and are rarely as wonderful as they seem. I also believe there is a lot of data out there to support my belief that there is not going to be a muni crisis that will cause investors to lose huge amounts of money.

Right now I am doing lots of research on the bond insurers AGO and MBI. I also believe there are great opportunities in the tax-free income closed-end funds, especially those that are trading at a discount to NAV.