100 US cities threatened by $2 Trillion debt crisis

Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble.

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.

Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery.

"Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy," Whitney told the CBS 60 Minutes programme on Sunday night.

"There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults."

http://www.guardian.co.uk/business/2010/dec/20/debt-crisis-threatens-us-cities

 

So you are fairly bullish going fwd then huh?

 

I always wondered who was funding state city and muni bonds in CA.

I always laughed when I heard they would never default.
The state of CA legislature still seems to be acting like the money comes from the tooth fairy. They have been unwilling to make real choices and real cuts.

In fact my kids elementary school educations are still excellent. I have been waiting for the shoe to drop since about 2003. It still has not.

 

Won't the Feds print money to pay all the short falls... Just like they're doing in Europe?

This will be normal operating procedure... until it no longer works.

 

A relative was recently in Flint, MI.

He saw a hand-lettered sign - "Free houses".

After thinking about it, the houses were still too expensive. My relative didn't get one, and neither did I.

 

Generally, most of the muni investors are local residents.

What are they doing in Europe exactly?

 

The end game is coming, every crisis will reach its natural conclusion but it is not what you think it is.

 

http://www.cnbc.com/id/40769692

Meredith Whitney blew away CNBC. She does not march with the idiots
She is speaking of truth. This lady is not some idiot.

This is basic math.


So, please...stay the fuck away from TEXAS when the shit hits the fan.

 

OK, Sallie, don't keep us in suspense. Kindly tell us "what rough beast slouches toward Bethelehem to be born?"

 

I am thinking that since we picked up four electoriable votes at the 'spense a NY, NJ and PA that we should goraciously accept all Yankee re-fuggees. Most um be a comin' thru my neck o' the woods on they way ta yorn. Ah'll be sellin' um water and blankets onna side a tha freeway.