MUB CANARY IN THE COAL MINEThe chat posted shows me that there is an issue coming in the BOND market rather soon that will effect all the markets in the US
MUB trade ideas
DTI8 Tendencia AlcistaDesde agosto del 2015, este ETF de fondos municipales americanos presenta una tendencia alcista
MUB sitting on major support.MUB sitting on major support, but forming a bear flag. A break here and MUB sees 96.
ANALYSIS : MUNIS BOND - OTHER TIME BOMBS ( other than Detroit)This week , the city of Detroit filed for chapter 9 bankruptcy protection. The city has debt obligation of $18.5 billions dollars. If you held Munis ETFs, such as MUB, this news didn't really affect the price, since most of these ETF have very little exposure to Michigan. However , they have exposure to other "time bombs" : Illinois, and California
California pensioner are well paid, most of them receive $100k + each year from their pension. However , new accounting practice will force California to show that their pension is underfunded by $329 Billions. Other city in similar situation are :
New York City
Baltimore
Miami
Oakland
Scranton
Let 's hope these cities don't have the same faith as Detroit. Can you imagine Los Angeles declaring bankruptcy ?
Cheers
Algo
