for many of us or usa citizens, they dont really know what's going on in the usa. there are three municipals, one huge two small, that are going through some sort of bankruptcy process, they are - detroit, the famous calif city menitoned in this blog before - stockton and san bernadino.
with incomes getting lower and real estate recovering only mildly in these muni, they are running out of cash to pay their debt.
if such muni bankruptcies gather momentum, there will be a liquidity crisis, funds drying up for muni with bad finance management and the us federal govt might have to step in, thus causing fed to backtrack on any possibility of tapering.
well, the tapering [whisper not action] might be big ben's motive to make his mark in history now that he is quitting the fed soon. he started the bond buying and he mentioned [not actioned] that it should be stopped, so he wont be blamed like greenspan for his loose money policy, but it cant be stopped as you can see.
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