Added: Fannie Mae and Freddie Mac, the mortgage giants, have just been downgraded by S&P too. AA+
Added August 9th: S&P Cuts Ratings on 11000 Muni Issues
Politics and science, humor and hypocrisy. METANOODLE
Sunday, 7 August 2011
Municipal bonds with US federal guarantee facing downgrade too. Update: Fannie & Freddie are down.
Moody's suggests moving 7000 muni bonds down in lockstep with the US credit. JP Morgan says "After S&P’s announcement of the US downgrade, expect follow-through on municipals directly supported by the US credit, as well as those highly reliant on the federal government". Money has been moving out of municipal funds this week. See chart below. Source at Zero Hedge.
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