Vallejo CA has filed for bankruptcy protection. Dr. Green and Prof Vasil teach govt accounting. One of the dirty little secrets of accounting is that influence has kept hte GASB FASB from demanding that entities rully reveal all future liabilities for pensions and health care. Click to read George Will's descriptioin of how ordinary people, nurses, firemen, police are making six figures salaries.
THe prices fo municipal bonds have tumbled as reflected in the prices of publicly traded muni bond funds. Look at FRHIX for example. The reason is that there is more and more reason to suspect that cities cannot make good on future pormises, especially given saggin home prices.
No doubt you will little of this as both candidates promise change and rescue to already strapped places like Ohio and Michigan. But this is another reason financial markets themselves are sagging.
Professor Elam 
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