Municipal bonds

I am not able to give you investment advice regarding NYC Munis, but note that even during the darkest hours during the 1970's NYC didn't default on its Munis.

Yes, but in the 1970s Lehman Bros didn't go under, Merrill Lynch and WaMu weren't forced to merge, the investment banks were still going strong, and we weren't expecting one or more of the big 3 automakers to go down. If we expect NYC real estate to cave in, would that go hand in hand with a default on muncipal bonds???

Amity,

Very true. I was not saying that it couldn't happen, just that it is interesting that it didn't happen back in the 70s.

The government will likely step in.

But, part of the benefit of munis is security. If there is even a 2% chance of loss, they should be paying much higher rates than current..