If municipalities are beginning to drop like flies all over the country during a housing recovery, then what is going to happen when we enter the second leg of our double-dip recession?
Housing growth and turnover is important to municipal budgets because these items are great revenue producers. Meredith Whitney saw this coming. Keep in mind my two rules for a dysfunctional system:
1. It will eventually crash.
2. But it will keep on going much longer than you expect.
It is very hard to make money on a delusion ending, because humans are just so damn hard to figure out.