Municipal Bonds: America is Winning the Battle Against Meredith Whitney

• Posted by Greg Harmon
• on July 21st, 2011

When Meredith Whitney came out talking negatively about municipal bonds she did not know what she was getting herself into. This is America by golly, and we don’t take to kindly to people walking around saying that we are gonna default on our debts. We may walk away from our homes or just sit in them without paying the mortgage for a few years, or run up $15,000 balances on 10 pre-approved credit cards and then declare bankruptcy, or even buy 3 cars, a boat and a jet ski without being able to make one payment, but that is us as individuals. Totally different from a Country, State or Municipality defaulting. Where does she get off?? So when she does the rounds on television spouting off the statistics and the horror stories that doom many states and municipalities, what do we Americans do? We buy Municipal bonds that is what we do. You bring us a fight and we fight to the death. We are Americans and we will show faith in our country. Take a look at the chart of the iShare S&P National Municipal Bond Fund (ticker: $MUB) below. It is making all time highs bi-atch! That will show you! We

iShare S&P National Municipal Bond Fund, $MUB

will buy this mofo until it cannot be bought anymore just to prove you wrong. This current break out coming above the 104 trend resistance and above the 102-104 consolidation range has a target higher of 108.50 on a measured move. Take that as measure of ‘anti-default risk’, yeah I said it, Oh Snap! And the Relative Strength Index (RSI) rising along with the Moving Average Convergence Divergence (MACD) indicator crossing positive. This ETF is going higher and gonna make you go crying to your momma until you wish you never picked this battle.

Of course the technical set up has nothing to do with the actual data Meredith uses to state her case. Who needs data, we stunk at math in high school anyway. Just keep buying and it will keep rising and spitting off more Benjamin’s to spend in the clubs. Good luck Meredith, by the time you are right I will have 5 cars, 2 boats and be sipping Patron at the club all day. Come find me there when I am worthless. America!

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