Don't worry, its contained.

http://money.cnn.com/2007/08/16/markets/bank_of_america.reut/index.htm?postversion=2007081615


or

http://tinyurl.com/2ybxsc

The quote:
"A Bank of America hedge fund Thursday offered $250-$300 million of municipal bonds for sale, pushing secondary market prices lower, according to sources familiar with the list."

later in the article:
"A far bigger worry is the risk that tender-option-bond programs now will unwind their positions, financial analysts say. This could damage muni bond prices because the programs are so large and because they all tend to act in unison.

Tender-option-bond programs were often fat money-makers until the summer subprime mortgage debacle forced a brutal reassessment of risk and sent investors scurrying to Treasurys."

Ok... lets see...
Muni's are now dropping in price as they were overvalued as a side effect of investments that are tied to sub-prime bonds.

Oh... so contained. This didn't raise any hairs on the back of my neck... oh no... This isn't done. Not even close. What other hedge funds are going to have no choice but to duck and run?

Got popcorn?
Neil