Muni's Are Going to Fail. So Let's Buy!

Over at Ace this morning, a warning that states and munis are going to go busto:

Unfunded liabilities to state and municipal pensions are over a trillion dollars -- promises unbacked by any real coin -- and both states and municipalities rely on issuing debt to fund their increasingly unsustainable spending. They're approaching junk status now on that front, and will soon approach "joke," so very soon the market is going to impose some extremely serious austerity measures on these bodies, as they simply will no longer be able to borrow at all.

A dire situation, to which CNBC responds in careful, measured tones:

Kaminsky's Call: Muni Market May Be Great Buy Opportunity - CNBC

Remember, we are living in the golden era of "Too Big To Fail," a time when Uncle Sam is ready, willing and able to bailout any institution is deems systemically important. If Citigroup is too big to fail, logic would dictate that so too is the State of California.

Moreover, state and local issuers can do something corporations can't: raise your taxes and cut your services, something that is happening right now across the country.

All of this is bullish for the muni market.

Don't worry! The Man's gonna pay for his mismanagement with your money! Buy, people! Please?