Muni Bonds Under Default Threats

Many people thing that US isa safe place with good standard of living, But that notion is going to change in coming months as Municipal bonds gradually defaulting on their payments. So whats that implication on the real society:

1. No garbage collection on regular basis
2. No proper sewer
3. No proper water facilities
4. No proper electric supply
5. No proper infrastructure (like Roads/Bridges etc )maintenance
6. No proper help regarding Health/Police/Fire

In practical terms to explain there are three phases :

1.Denial
2.Fear
3.Acceptance

Now people are in the 1st phase i.e denial............so it will be a while to adjust to their life style. Anyway here is the video by a well respected banking analyst( Whitney, who vocally spoke about banking crisis in 2007 when everything going fine) explaining about state Budgets........