This story has already been told.
While “Muniland” may certainly be in for more hits, that doesn’t necessarily affect the average investor – one might try moving up the sophistication chain a notch. The next stop seems to be regional bank money market funds.
UPDATE: Pay attention to the natural progression – specific to the Florida case, that means pointing fingers at the previous political office holders.
UPDATE 2: Blackrock to the rescue. Excellent call, and it sounds like they are dealing quite fairly and equitably with the remaining fund participants.