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Suze Orman and Municipal Bonds

Yes, we all know by now that Suze Orman announced that she was a lesbian on the Larry King live show.  I was stunned as anyone because I watch her show frantically.  I also was amazed that she has over $25 million as part of her estate.  This site is not about politics but I do love the fact that she is a woman, a lesbian, powerful, and definitely a great role model for anyone for the young and old.

Since some of you are conservative investors and like things insured I thought you may try this. 
What do you do with the rest of your money? Save it and build it in municipal bonds. I buy zero-coupon municipal bonds, and all the bonds I buy are triple-A-rated and insured so that even if the city goes under, I get my money. I take a little lower interest rate to make sure my bonds are 100 percent safe and sound.
Do you play the stock market at all? I have a million dollars in the stock market, because if I lose a million dollars, I don’t personally care.
Someone else told us about municipal bonds.  I understand they're usually good for tax situation, too.  I was told that the ones to buy are the ones backed by the cities themselves though...and I still remember when cities were going bankrupt...you were probably just a baby, but it happened.

But tell us more, because I know nothing about it, wouldn't know where to go about buying a municipal bond...

You're kidding, I assume, about the million dollars?  If not, can we borrow some money?  (Only kidding....)  At your age, you can afford to not care if you lose money in the stock market...there's always lots of possibilities for more money later on.  At our age, not so much.
-Comment 1
That is Suze with the million on there not me.  Sorry if I made that email confusing.  That was an interview with Suze Orman. 
The point of the last part of the interview was to show she has a net worth of $25 Million and only a million in stocks.  She is a very conservative investor by far!!  The internet is going crazy with her comment about municipal bonds there is lots of info on it but...

Here basic municipal bond info:
http://en.wikipedia.org/wiki/Municipal_bond

Before you go buying bonds think this:  I read another article today that said Suze Orman only said this because it was her money and the RICH do not want risk but they want returns (hence - you call them conservatives for a reason).  Read the stories below:

"Investors with more than $5 million want guaranteed returns. They consider themselves conservative or moderately conservative when it comes to investment risk tolerance and they are most fearful of venture capital, hedge funds, private equity, limited partnerships and international investments -- in that order"

Take $10000 of mad money?  That would represent about the whole amount I expect to spend for our home improvements here and $5900 of it is already gone for the accordion shutters (which won't be delivered for 20 - 25 weeks...pray for a very late hurricane season). 

Research on corporations has to be based on the information the corporations are willing to let people have...the real information is known only to a small number of people...the ones moving their stock option dates around just before the stock tanks.
My friend and I always used to look at each other in the middle of a lousy day at work and say "Where's our trust funds?"  We were both certain an error had been made and we were supposed to have been born rich.  So there it is.  Me and the trust fund babies, risk averse.

A few months ago, you sent an article saying that the best money being made in financial companies was by the people investing in the financial companies themselves...that was echoed in this little quote at the bottom of the marketwatch.com article…

" Private-equity offerings and hedge funds for the masses are just that -- suckers' bets. If the capital markets had such great deals they would continue to be reserved for the privileged few who could afford them."