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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Sr K who wrote (80949)7/2/2008 12:37:13 PM
From: Jim McMannis  Read Replies (3) of 116555
 
RE:"And, generally, if tax rates rise, muni rates rise but muni prices fall."

Back to school for you. <G>

If taxes rise, munis become more desirable vs taxable bonds. The issuing agency has to pay less of a rate. Price of the bond rises.

Now, Volcker...that's what the doctor ordered but the cure may be painful.
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