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Archive of entries posted on 13th July 2011

The fears of investing in muni bonds and mortgage REITs

“So, Fred, why do governments borrow money?” think three stages: First, the governments borrowed  to build lasting infrastructure — bridges, roads, tunnels. Then it borrowed the money to pay day-to-day expenses it couldn’t (or wouldn’t) cover with taxes. And finally, it borrowed money to buy votes — by promising voters benefits (now called entitlements) and […]