Comments on: Muni bonds for rich seniors Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 By: Jim_Walker Wed, 27 Apr 2011 02:44:48 +0000 Muni bonds are great until your local town bond issuer declares Chapter 9 like bankruptcy.

There have been about 250 “Non-payment Related Defaults” on file. To see a real portfolio of bankrupt muni bonds, go to  /752/example/1

The painful truth is that as muni debt increases, so do the risks that someday it will be politically, economically and financially worthwhile for borrowers to walk away from paying back their loans to bondholders.

As we all hate to hear, public employees are now paid higher total compensation than private sector employees. Yet the private sector pays for these public salaries thru higher taxes. This is not a sustainable system.

Bondholders should realize we are vulnerable to losses as cities, towns, and states unless we all take action today to reduce expenses and renegotiate public pension and health-care obligations.