So the other day I found a dollar. This dollar, along with the other dollar I found in my spare pair of pants, gives me two dollars. Now that I have two dollars, I think I will invest one of them. Maybe, just maybe, I can make a third dollar. Then I will have three dollars.
But where to invest my one dollar?
Maybe in a municipal fund?
I just finished reading an article about municipal bonds (yes, I read financial newsletters). This article got me thinking:
Could municipal bond investing represent a certain demographic's level of faith in the local government's ability to stay afloat?
More than just an investment opportunity, investing in municipal bonds is a statement of confidence in the local government. It is a strange dilemma that people could have more faith in the stability in corporations than in their own government.
A true measure of the popularity of municipal bonds would be to measure the actual investment and compare that to expected (or average) investment in a typical scenario. Especially during expected times of municipal bond prosperity. If people aren't investing in bonds when the market says it is financially prudent for them to do so, that means there is another factor in play. Possibly something social, such as faith in the system.
What if no one believed in government investing opportunities? Would the government tax more?
I'll admit, I don't know much about this stuff. But those are just some thoughts I had.
They do seem smart though, don't they?
Maybe I will take my one dollar and invest it in an independent minor league baseball team.
That sounds like a much more stable investment than investing in the government.