Municipalities & States going bankrupt, it begins in earnest this year.
With falling tax revenue (sales, business, real estate), higher interest rates debt (re-issuing maturing debt, and newly issued debt), with citizens moving to other areas that have lower tax regimes, and better economy’s and future prospects, now that most have run out of the Federal bailout money, cities are going to go bankrupt, and legally they can. –as the Vellejo article described, States have a more complicated situation.
May Repay Its Creditors as Little as 5 Percent of Claims Vallejo
A Path Is Sought for States to Escape Their Debt Burdens
When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.- Napoleon Bonaparte