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!

bloomberg.com/apps/news?pid= … refer=home

businesswire.com/portal/site … 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”

cnbc.com/id/15840232?video=686095364&play=1

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 .