This month saw more of news about financial market volatility. Tax day has come and past. The Month’s municipal bond news included:
- 7/16/2012: San Bernardino, California declared bankruptcy. There may be some criminal negligence “accounting errors” involved in addition to the usual over paying employees and projects.
- 7/11/2012: Municipal bond inflows hit a record during the quiet July 4th week. Investors are trying to tax-free income and realize that Munis have done well in the last couple of years.
- 7/6/2012: Stockton has filed for bankruptcy and is trying a similar tactic as the Vallejo by seeking to cut the interest rate paid to their lenders.
- 7/6/2012: Obama care is levying a 3.8% tax on many investments. Municipal bonds are not affected by this and should become more popular due to this new tax.