Overview
Politico Pro quoted Micah Green in a March 20 article titled "Fed Intervention Signals Concern Over Local Government Credit Crunch." The article discusses how the Federal Reserve intervened to aid the municipal bond market amid growing concern that states, counties and cities could face a potentially serious credit crunch as the coronavirus hammers the economy. Many of the industries most in need of government bailouts — including aviation, hospitality and transportation — rely on infrastructure financed by state and local government debt.
Green, former co-head of the Securities Industry and Financial Markets Association, asks: "Are policymakers recognizing what's going on in the muni market? There does seem to be a focus on the travel, hospitality, conference business. But the very infrastructure that supports that, that builds convention centers, that builds airports, that builds just general infrastructure, what's happening to those revenues that support those bonds?"
The full article can be read at Politico Pro (subscription required).