Some Bogleheads may recall a story from Fortune magazine to which I posted a link a few weeks ago. The story concerns the possibility of defaults on municipal bonds and contains an excellent description of how a municipality gets into a position where it may be unable to continue making bond payments.
http://money.cnn.com/2008/10/13/news/ec ... 2008101510
One of the alleged villains in the story was Birmingham, Alabama, Mayor Larry Langford.
I'm reposting this link today because CNN just reported that the FBI arrested Mayor Langford this morning. FBI spokesman Paul Daymond said he could not comment on the charges.
The mayors of large cities don't get arrested every day, so I expect national coverage of this story, including cautionary stories about municipal bonds which may move the prices of munis and muni funds.
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