01.02.09
The New Sexy
Certain areas of law are known as “sexy.” They’re the areas that everyone’s talking about. In the 1990s, it was IPO/securities. A little while ago, corporate bankruptcy–Enron, Global Crossings, Collins & Aikman, Delphi–became sexy. Now, it looks like municipal bankruptcy might be the new sexy: The accountant who predicted the nation’s largest municipal bankruptcy says as many as 10 insolvencies will roil the $2.7 trillion U.S. market for state, county and city debt next year as public finances worsen amid calls for federal aid to state and local governments.
I don’t see much potential in southwest Michigan/northern Indiana. Most of the dire predictions are focused on California. But it’s still interesting stuff . . . and if you’re holding those “safe” municipal bonds, you might want to unload them (but never ask a lawyer for investment advice; see a professional in that field).
