One of the things I would like to see is states credit ratings go down farther. And also the towns and other taxing bodies. I would love to see some haircuts on the bonds. The reality is that bankers have become democrats over the past 50 years because municipal bonds are favorites of government unions. Unions and banks get together to create these double tax exempt bonds and sell them to bank clients.
I would like to see those clients lose a little money so they can see that muni’s have risk. And if they are priced properly, governments will not be so fast to borrow money.