So municipal bond holders should pay for the bad decisions of government? - but there won’t be that many bond holders, municipal or otherwise, once it gets into people’s heads that Trump’s way of handling things once government spending gets out of hand is to stiff those who made loans to the government in good faith - until of course the low interest rates he claims to want climb for the taxpayer to cover as the government’s credit rating falls and it has to pay more and more to convince people to lend to it.....
Yes. It is called the free market. Nobody forced people to buy Puerto Rican munis.
Government spending has been out of hand for quite sometime. Last I checked that was not Trump’s doing.
You obviously understand how credit markets work. Why do you advocate tax payers bailing out the government? The government generates no income on its own.
Don’t like it? Don’t buy high risk bonds. Last I checked, an entity with $19Trl dollars in debt and income of $15trl was a junk credit.
Why should the tax payers of one junk credit entity bail out the bond holders of a defaulted entity?
Municipalities are the government. There are many layers to that beast.