14th
On March 4th my wife and I close on our first house. I called my broker this morning to liquidate some of my municipal bond funds for the down payment. The municipal bonds that I own are fully insured and all triple A. Incredibly because of the liquidity issues right now I can not liquidate the funds. They are locked and I was told that the “Auctions have failed”. Now the good news is that these municipal bonds that were earning me a little less then 4% tax free are now earning me 15% tax free. The better news is that I luckily have other places with enough money to still buy the house. I am not sure what this means in the big picture as I am definitely not an economist. What I do know is that a lot of America’s wealth is locked up in Muni’s right now and that locking them up could cause panic.
If things get worse, just remember opportunity comes out of change, so look for the opportunities and take advantage of them.
