Muni Bond Weakness

Stocks have been levitating higher, but municipal bonds have been getting hammered.

Note that the downside action corresponds pretty well to the fall elections. As you may know, lots of states are on the verge of bankruptcy. But many newly elected Congresspeople have been talking tough about deficits and spending.

Perhaps muni bondholders are worrying that states won't get the bailouts that they'll surely be asking the Federal goverment for...