A coming muni-bond meltdown?

The New York Post reports:

the same agencies were just as casual about mortgage-related bonds just four years ago. As the third big rater, Fitch, said in late 2006, while giving a AAA rating to a complex "collateralized debt obligation" backed by mortgage debt, "Previously issued CDO transactions have shown stable performance to date." Those once-AAA securities are now rated junk: Sometimes, past performance doesn't predict the future.

Just as they did in the mortgage markets, investors are ignoring the obvious -- and they're partly to blame for New York's failure to face reality.

An article well worth your time.