But, on a lighter note, the pair both reports that municipal markets are pretty rosy.

FORBES: The Still Shrinking Local Governments

If this sounds far-fetched, take note that the scheme is already in place for supposedly tax-exempt municipal bonds.

FORBES: Investment Taxes: Defensive Moves

Note: this post draws heavily on a report by Tracy Gordon, a municipal finance expert at The Brookings Institution, and a report published by Michigan State University.

FORBES: My City Went Bankrupt. Should I Flee?