http://www.bondbuyer.com/article.html?id=20080523F2N4W0PW&email=y Is this the start of a trend in municipal securities?
1) When muni-bonds default, it's not as though you can go into the city and start selling off assets or take control of the town. 2) The real culprit behing the bankruptcy is excessive spending and a belief that the bull market in real estate would go on forever. 3) The danger now is that the city will never regain its footing to meet its obligations and that other cities are in a similar situation.