Bloomberg reports:
Warren Buffett, whose Berkshire Hathaway Inc. has been trimming its investment in municipal debt, predicted a “terrible problem” for the bonds in coming years.
“There will be a terrible problem and then the question becomes will the federal government help,” Buffett, 79, said today at a hearing of the U.S. Financial Crisis Inquiry Commission in New York. “I don’t know how I would rate them myself. It’s a bet on how the federal government will act over time.”
We'll bet the corrupt state of Illinois wants a bailout from
this situation:
in 2007 there were at least 18,000 more newly certified teachers in Illinois than available teaching jobs. Over the past five years, that totals about 75,000 unemployed teachers. What other profession has a 30 percent unemployment rate but growing numbers of $100,000 salaries?
Questions coming for the muni bond market.
