This week saw more of news about financial market volatility. The Week’s municipal bond news included:
- Pennsylvania: State Takeover of Harrisburg – mcall.com. Harrisburg, Pa. continues to make the headlines with its fiscal problems. They are finally nearing an important stage that will require pain on the part of bond holders, as well as investment banks.
- Muni Bonds: Poised for Pain – WSJ.com. – Muni bonds have outpaced stocks in 2011 but several factors seem to indicate that more gains will be difficult. The economy is slowing making state budget projections over estimating tax revenue. Obama’s jobs bill may cap the tax deductibility of Muni bonds.