President Joe Biden greets California Gov. Gavin Newsom (D) as he arrives at Mather Airport on Air Force One Monday, September 13, 2021, in Mather, California, for a briefing on wildfires at the California Governor’s Office of Emergency Services. (Official White House Photo by Adam Schultz)
We live in a dangerous world where manmade disasters are as deadly as natural ones. What we’re seeing with the wildfires in California is a combination of both.
It’s why, when you invest your hard-earned money, you need to think first about the return of your assets and only then about the return on said assets.
This is not to pile on California in a time of trouble. It’s to point out that when you have clueless politicians running the state for their own good, not their residents’, they are guided by their donating class, their handlers, and that’s never good for Main Street.
You know my concerns about the safety of municipal bonds in escape states like California. What makes this issue even more infuriating is it’s the wealthy donors who, in their high tax brackets, avoid taxes by owning municipal bonds.
Now that insurers have been run out of California, who’s going to flip the bill? Who gets paid first? Is there going to be a federal bailout where they pick winners and losers? Will some get paid back in full while others get pennies on the dollar?
Action Line: When you partner with a state by investing in municipal bonds, because it is a partnership, make sure you know who you’re dealing with. When you want to talk about creating a fixed-income plan with a margin of safety, let’s talk. But only if you’re serious. Email me at ejsmith@yoursurvivalguy.com.
Originally posted on Your Survival Guy.
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