Jan 14th, 2011
Does Gov. Chis Christie (R-NJ) have any clue how necessary municipal bonds are going to be for his state's survival over the next several years? Perhaps I should rephrase the question;
Does Gov. Christie have any idea what municipal bonds are or how investors in this particular market respond to politicians when they say stupid things?
From Business Insider:
"Yesterday we noted how a New Jersey muni bond offering was pulled just a few minutes after Chris Christie said at a town hall that healthcare costs were threatening to "bankrupt" New Jersey.
Now it's a little unclear if the connection was real. For one thing, yesterday was an ugly day in the muni market. For another thing, everybody knows that healthcare costs are a huge issue everywhere. And beyond that, people also know that words like "bankruptcy" may be a bit hyperbolic.
Still, all the talk of muni bankruptcies aren't making muni bond salesmen happy.