Barrel Strength

A friend remarks.

Folks in the muni-bond world have been concerned of late because the
Obama admin kept proposing capping the tax-free muni exemption for the
wealthy, then saying they wouldn't do that, then proposing it again.
The proposed cap ended up in the latest budget proposal anyway. If
this were to pass it would mean a higher interest expense for
municipalities raising money as wealthy buyers would not buy as many
bonds as they would otherwise, but Obama has a solution for that
problem: expanding the Build America bond program where the Federal
government subsidises the interest payment. So theoretically the
states pay more for borrowing, but the Fed's tax people more and then
give that money to the States, and the biggest difference from the old
way of doing things is the Federal government has more control over
state and city finances.

Very nice Chicago-style maneuver by the President.