MuniLand

The Treasury created this excellent chart about long-term deficits. Click in the image to see a bigger version.

Good Links

Congressional Research Service: An economic analysis of tax-base broadening

ZeroHedge: “The synthetic credit bubble has now been blown to a new all-time high”

Bond Buyer: Banks gobbled up municipal bonds in 2011

MuniNetGuide: How a local government’s approach to fiscal distress can determine its future

Detroit News: Detroit council approves borrowing $137 million

Bond Buyer: Detroit council OKs $150 million bond sale to pay debt service

LA Times: More municipalities betting on pension bonds to cover obligations

Minneapolis Star Tribune: City council endorses Vikings stadium

Sacramento Bee: California legislative Democrats balk at Governor Jerry Brown’s budget cuts

@Twitter Talk

John Carney  @carney Basically, it’s an implicit No Crony rule. Government power shouldn’t be used to produce private profits.

Jonathan Blanks @BlanksSlate Corporate involvement in politics=bad. Gov’t mandated transfer payments to for-profit corporations=essential to public good. I’m confused.

Sara Eisen  @saraeisenFX wow Gary Shilling says home prices will go down another 20% from here (peak to trough -46%)

Nick Timiraos  @NickTimiraos Eight cities hit new lows in January’s Case-Shiller index: Atlanta, Chicago, Cleveland, Las Vegas, NY, Portland, Seattle, Tampa

Providence Buzz  @ProvidenceBuzz Governors to tour plant where ‘pink slime’ is made: The leaders of five states plan a visit to the only place where… http://dlvr.it/1MnfGV

David Schawel  @DavidSchawel Retail investors continue to dump muni CEF’s – some attractive opportunities in terms of discounts & std dev’s $VKQ $IIM

MuniCredit  @MuniCredit While pension obligations bonds have a place in our market, they often fall under the category of desperate govts making desperate moves.

LearnBonds.com @LearnBonds How a Financial Blogger Wounded a Governor’s Pride, and why you might consider selling Puerto Rico bonds http://stks.co/36D7