Fed will backstop municipal debt
The Fed's goal is not to let any kind of Lehman moment take place. They're taking on everything.
At some point we might start to worry that the Fed will take losses on these things. That would violate their charter but right now leadership at the Fed has decided it doesn't care.
The thing is, they're plugging every crack in the dam and trying to keep everything working. If there's a black swan or some other kind of overwhelming event, then it all comes crashing down.
I talk about it here:
