Posted on 06/01/2010 6:14:48 AM PDT by rightwingintelligentsia
NEW YORK (CNNMoney.com) -- Think Greece and Spain are drowning in debt? Look a little closer to home. Seven U.S. cities recently had their municipal bonds downgraded below investment grade. Their debt is now, junk, considered more worthless than that of the so-called PIIGS.
"America's short-term budget crises, long-term growth perspectives and needs for austerity are similar [to Greece]," said Matt Fabian, managing director at Concord, Mass.-based consulting firm Municipal Market Advisors.
Last quarter, Moody's Investor Services declared the debt issued by Harrisburg, Penn., and Woonsocket, R.I., to be junk, or below-investment grade. Meanwhile, Fitch Ratings currently has four other cities in the basement -- Detroit and Pontiac, Mich.; Harvey, Ill.; and Littlefield, Texas -- while Standard and Poor's has one -- Central Falls, R.I.
(Excerpt) Read more at money.cnn.com ...
Detroit - what a shock.
I was surprised only 7 cities are on the list. I was certain that LA would be on the list from all I have read. NY too.
How much did Los Angeles pay to stay off the list?
I was surprised to see a town in Texas on the list. Anyone know why Littlefield Texas would be on the list?
Harvey, IL between the Obama core voters and the Hell’s Angels its best to bypass that little spot of heaven.
What about Flint, Michigan? Cleveland?
My town is running a surplus. We may be the only one in Virginia - heck one of the only ones in the country for that matter.
Get rid of capital gains and income tax and replace it with a 15% flat consumption tax. Economy will take off, investment will return.
What do we have to lose? Bigger government? Say this isn’t enough to run government? Better decide how to start cutting it down to size.
I live in the Detroit area, but spent some time in Harrisburg last year. Harrisburg sucks more than Detroit (if you cxan believe that).
Walking around Harrisburg gave me flashbacks to some time spent in Flint 20 yrs. ago.
yep. I’m in Detroit right now... seeing my sweetheart. While it sure is pretty country, it absolutely amazes me what has happened here. It is stunning, and my family and everyone I speak to, does not even seem to recognize it.. Strip mall after strip mall, with all stores closed. Large chain after large chain grocery stores: closed. Entire streets with 30 % of the homes, boarded up. Quite literally, it is a ghost town.
I have traveled in the Detroit agea, since last Wednesday , from Birmingham to Livonia, to Farmington Hills, to Monroe, to Highland Township, Pontiac..
it is mindblowing... and will be coming to a town near you. Detroit is way ahead of the curve in terms of this kind complete collapse, by about 10 years.
Now I’m back heading back to Los Angeles, which has many store closings , to be sure, but nothing like this.
I have 2 brothers and 3 friends back here, who are permanently out of the job market. They all decided to move back in with mommmy and daddy, and take whatever state money they can get. sickening.
How can you sell an asset that provides 1/3 of your revenue?
Better idea is to sell assets that you are losing money; Assets that a private owner might be able to turn a profit on. Say garbage pickup (I don’t know if Harrisburg has public garbage or not).
Cleveland is a disaster. Every time I’ve been there recently I’ve been panhandled....mostly before 9/2008, too.
I too have been in the Detroit area recently and concur with your analysis. I appreciate your perspective on LA.
Thanks.
Uh, dude? Detroit’s looked like that for almost 20 years now. It’s not an indicator of *anything* outside itself.
Don’t you mean 40 years ?
Apparently they still had chain grocery stores in Detroit in the 80s, so no.
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