I get the sense that the serious of complex investmentsts that Atrios calls “The Big Sh@$pile” were aggressively dumped off on a lot of states and municipalities over the past few years, because it now appears that
Montana’s Short Term Investment Pool, another money market like investment. And again, there appears to be a run on this.

We’ve got the same thing going on in King County, WA (Seattle).

But here is the scary quote:

Montana has completed a thorough review of its subprime exposures. Less than 1% of the underlying assets of its SIVs are subprime, South said, with the rest being bank debt and prime and commercial mortgages.

“It’s not a subprime issue anymore, it’s an asset-backed commercial paper issue now,” South added.

Translated into English, this means that the entire us investment system is now unsafe.