Reginal Thomas
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The EU Eases Regulations Allowing Banks To Buy U.S. Municipal Bonds

Now those same banks are being hung out to dry and will most likely face huge losses with Detroit's bonds. Belgian bank Dexia (DEXI.BR) which was already bailed out has already set aside 59 million euros to prepare for the losses it is expecting to take from Detroit's bankruptcy. While the German bank Commerzbank (CBKG.DE) told investors on August 8th that it took a "substantial number" as a write down from his Detroit bonds. 

The exposure Europe's banks are enduring from Detroit's debt, could lead to banks moving away from buying muni-bonds in American cities. It also shows other cities who are suffering from big pension and health care benefits, a new a legal route that allows them to get out of debt while leaving their lenders in the dirt to deal with the loses on their own. 

What do you think this means in the big picture when it comes to the status of U.S. municipal bonds and their value in the global market? With the economy slowly but surely growing do you think, Detroit's continued string of bad financial luck will spell doom for bonds in other cities?