The FT article today brought a over-indebted U.S. states and municipalities. (Please click to enlarge)
The huge market for municipal bonds (U.S. $ 3,000 billion) this year will go towards difficult times.
Although the U.S. economy recovers, there will be tense due to reduced revenue from federal sources, declining property tax revenues and higher interest rates due to lower borrowing capacity to finance a significant impact on the local level.
general, local governments to cut spending significantly and their finances controlled manage to meet their debt obligations. Despite all the efforts we will see some bankruptcies in 2011 and 2012. Largest Bobble candidate is Illinois, where the financial situation is most precarious, and the budget is financed largely by issuing public bonds. Bonds of Illinois for years include the highest Credit spreads in the U.S..
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