american states bankrupt??, page-4

Mr Prechter has been talking about this eventually for years. What does it mean?

States must raise taxes to survive, sapping consumption but that still may not save them.

Muni Bonds will become lower quality and investors will demand higher yields. This will happen with fed bonds down the track also. The big bond issues of January/Feb are just the beginning.

Higher yields mean lower bond prices and the elimination of the myth that you should invest in shares to get a better income returns (which many commentators suggest because bond yields are at 40 year lows). Shares and bonds could fall in unison.

Precthers book, 'Conquer the Crash' provides a great alternative view for those interested in preserving their wealth. Many think he is mad but a lot of what he has said is unfolding at this moment.

noip