More than a handful of analyses have been ditched out like out of a toaster about how Muni defaults are really not a risk.
The Meredith got it all wrong.
Meanwhile, Buffet just recalled all his defaults swaps on all muni debt. This is usually an expensive move having to recall the insurance at a premium. If someone can afford it, he can, and he did.
If he had the capital to recall it early; then he doesn't need the capital to invest it somewhere else. So why do it.
I think the FED calls this move Quantitative Ease. They also act like this with very old bills and with counterfeit. They just take them all out and disappear them.
It is a pretty terminal decision for The Long Term Value Investor.
