As I have mentioned before, the housing bubble and bust is successfully stripping municipalities of their financial sovereignty.
The Creeping Financial Coup d’Etat
To make matters worse, with municipal bond insurers in trouble, the issuance of municipal bonds is getting more expensive.
Enter 
Warren Buffet to take a position to strengthen the insurance support:
Buffett Offers to Back Municipal Bonds
Does this mean that as municipalities go into technical default or default, Buffet will be in a cross-cutting position to dictate terms to municipalities? So, for example, they have to shut down schools, pass laws requiring terminator seed or sell off their land, water, utilities and other assets.
Seems to me that Buffet is positioning himself to be in the catbird seat to play an invisible IMF to the US municipalities “Argentina.” Buffet and his network can make a fortune enforcing municipal policies and scavenging municipal assets.
This raises an important question. Why invest in Berkshire Hathaway stock, when you can instead buy up and control your local natural resources and strategic assets?