And some thought selling municipal bonds was a slam dunk, hello C of G
http://www.bloomberg.com/news/2011-0...kruptcies.html
an excerpt; " “If you are an investor in municipals you should be very, very careful,” Dimon said at the conference."
What are municipal bonds?
Answer: A municipality, such as the City of Glendale, will sell (issue)
bonds primarily to finance capital projects. This is similar to a family taking out a mortgage in
order to finance a house. Just like a family, the city has basic necessities (infrastructure) like
roads and office buildings, giving a multi-millionaire $160 so he can buy a floundering hockey team, etc. but usually does not have cash available for such major purchases.
Municipal bonds are like loans that help make large, important purchases affordable. Bonds also
effectively spread out the costs of major projects across their useful life, so all those citizens who
utilize them can help pay for them