municipal bonds

There are a lot of problems in the financial markets: banks are not lending to each other and the stock market has plummeted.

In some areas of the country, the credit crisis may be spreading to the municipal bond market.

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Government officials urged credit rating agencies Wednesday to rethink the way they rate municipal bonds, arguing that it the current system saddles local governments and taxpayers with unnecessary costs.

Forget what you may have read in the newspaper about state budget problems or bond insurer meltdowns. This is a perfect time to be buying municipal bonds.

The economy is slowing, the Federal Reserve is poised for more interest rate cuts (boosting bond prices), and a Democratic win in November would probably lead to higher taxes on the rich, thereby enhancing munis' tax advantages.

Throw in munis' microscopic default rates, and you've got an ideal landing spot for investors weary of the stock market roller coaster.

Forget what you may have read in the newspaper about state budget problems or bond insurer meltdowns. This is a perfect time to be buying municipal bonds.

The economy is slowing, the Federal Reserve is poised for more interest rate cuts (boosting bond prices), and a Democratic win in November would probably lead to higher taxes on the rich, thereby enhancing munis' tax advantages.

Throw in munis' microscopic default rates, and you've got an ideal landing spot for investors weary of the stock market roller coaster.