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Or rely on transfers from the federal government.. As most already do..

Munis are a timebomb, imho.

The entire economy of the world is a time bomb since it is predicated on exponential growth continuing indefinitely into the future. That cannot happen, so sooner or later we need to radically shift gears or we're in for a world of hurt. It's a question of when, not if. But since the current regime has been working for several millennia now, it is hard to make the case that The End is Near. It may or may not be.

>The entire economy of the world is a time bomb since it is predicated on exponential growth continuing indefinitely into the future.

Adding zeros is not that hard. Munis have actual tax bases and actual obligations and those seem out of step in some situations. That muni debt will be mispriced because of tax incentives seems obvious.

Municipalities are in the same spot that Greece or Italy is in. They have debt in a currency they do not issue. They cannot devalue or inflate that debt away. Therefore they have to manage their debt as a corporation or state would, but they are much smaller and less flexible. Bad buy.

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