Are municipal bonds safe?
On One Hand: Traditionally Safe InvestmentAccording to Richard Lehman of Forbes Magazine, municipal bonds traditionally have been thought of as one of the safest investments, where money could be placed as a hedge against inflation, even in periods of high market volatility, and ensure a steady return on the investment. Municipalities are considered unlikely to collapse and default on their debts.On the Other: Not as Safe as They Used to BeThese bonds are insured by companies that may have problems of their own, as has happened in the past. In April 2009, the Wall Street Journal reported that U.S. Rep.
