Muni Debt, downgrads on the way.

Rating agencies are getting worried about previously “quality” debt.

There is a rumour that Fitch is about to down grade the entire State of California debt! … refer=home … ewsLang=en

Watch this story, if Muni Bonds have their ratings dropped, either because they can’t fund the debt or because the monolines go under then, all bets are off.

California is €2bn overbudget so far this fiscal year.

Blue Horseshoe

The “Governator” is on a media blitz to counter the rumours that CA bonds are not “all they might be”

Blue Horseshoe

read about the background carefully, its the insurers who are being retated here not the munis themselves.

Bloomberg !

The munis are not that risky, some have sold issues off recently with no insurance and with 100% subscription takeup.

Lots of worse crap in the pipeline than munis .