10 Municipal Bankruptcies in Coming Next Year?
December 30, 2008 by Patrick Madrid
Filed under Patrick's Blog
From the “how bad will it get?” file, comes this recent story from Bloomberg.com about the likelihood of a slew of cities and counties, especially in my home state of California (we’re expats living in Ohio now), going belly up. It’s already happened (e.g., Vallejo & Orange County), and what I worry about is the potential domino effect that can bring a lot of other things crashing down when a cascade of bankruptcies picks up momentum.
“The accountant who predicted the nation’s largest municipal bankruptcy says as many as 10 insolvencies will roil the $2.7 trillion U.S. market for state, county and city debt next year as public finances worsen amid calls for federal aid to state and local governments. . . . ” (read more)
