Muni Bust!

Municipal bonds are going bust at 8 times last year's rate, according to info from Bloomberg. This was predicted by Russ Winter. Most of these defaults are from Community Development District bonds. These were communities built in the middle of nowhere in the last few years. They're defaulting due to falling home prices and rising gasoline costs. Their tax bases are being decimated. The record for Muni defaults was 1991, when $5 billion went bust. We may shatter that next year.