Municipals, an Alternative to Treasuries

If you're fearful of an all-out collapse of the global financial system in the next few months, you're not alone.

Take a look at the 0% yields on some short-term Treasuries and the high prices being paid for U.S. government debt by American and -- more importantly -- foreign investors. This is a clear flight to safety despite the government's enormous bailout programs. Some place the current bailout total at $7.5 trillion if all funds that have been promised are used.

This is a global crisis and, luckily for the U.S., the country is still seen as a safe haven relative to other world economies, including the eurozone and England. That's why Treasury prices have continued to rise. But if you want to buy safety a little cheaper, you may consider municipals. ...