re: Tax Free Muni Bonds

It's not a ridiculous claim in the least bit. You've never heard them make that claim because they make stupid margins trading them.

If these things were really yielding 5% tax free (effective ~7% return), then every hedge fund in the word would be giv long these things up leveraging themselves 20x and collecting their paycheck.

If you don't think Munis are risky, you don't even know what a bond rating is and you certainly have never read about Vallejo.

If someone offered me a 20 year Chicago muni (that I had to hold to maturity) or 20 years worth of toilet paper, I would take the toilet paper in a heartbeat.