Lookee-here!
New Jersey Gov. Chris Christie said his state was headed for bankruptcy and the muni market flipped out. Christie’s people are denying their guy had anything to do with the reaction — why?
It was not — as the traders are spinning it — a mistake to let the public know that the confidence game is winding down. States with massive unpaid obligations — cough-cough — can either default on them, ie, go bankrupt or enact huge tax increases. Sounds like the bond traders are banking on the latter and do not want to rouse the general public before it is “too late.”
