Municipal bonds are bonds issued by an American county, city, publicly owned airport, seaport, school district, or utility. The bonds are issued to improve the said cities or counties, or are tied specifically to a project within a county or city. Therefore, the bonds are backed by the county, city, or specific project. One general aspect of municipal bonds that makes them attractive is that they provide income with great tax benefits. Usually, municipal bonds are completely exempt from federal taxes. Municipal bonds trade in the bond markets, much like most of the other major bonds in the U.S.
The general consensus among stock advisors is that the key stock indices will continue to go higher. Each day, I hear about another “bear” throwing in the towel and turning bullish on key stock indices.
“Don’t fight the fed or the tape; just buy stocks, and you’ll do fine” has become the norm again. Sadly, this worries me a l… Read More
Detroit, the “Motor City,” has been approved for bankruptcy. In making the ruling, Judge Steven W. Rhodes, who sits in the United States Bankruptcy Court for the Eastern District of Michigan, said, “This once proud and prosperous city can’t pay its debts.” He added, “It’s insolvent. It’s eligible for bankruptcy…. Read More
The mainstream and politicians tell us the “wounds” of the financial crisis are over and the U.S. economy is in recovery mode. This simply isn’t true.
A few of the key indicators I follow to see where an economy stands are personal income, consumer demand, and businesses’ activity. All three of these indicators are telling me… Read More
We have seen cities like Detroit and others in California tell their municipal bonds investors, “Sorry, we can’t pay you.” The reason behind this? Their budget deficit was out of control, they reached the breaking point, and they filed for bankruptcy.
But the troubles of municipalities and cities aren’t behind us. In fact,… Read More