Who Owns All That Municipal Debt?

If there is a muni-bond collapse, as some people expect, who gets slammed?  You!  I have been negative on municipal securities along with state bonds for quite some time.  Municipal and states are bankrupt.  End of story.  They can not print money like the Fed. 

Due the "Zero Interest Rate Policy" of the Fed, investors have been reaching for yield (higher rate of return).  However, there is a consequence of reaching for that extra basis point, and that is increased risk.  Today's investors in municipal bonds will lose and lose big.  Just look at the following chart and you decide who is at risk.  Just because we have not had major defaults, yet, does not mean that it will not happen.