the economic collapse blog, page-6

They said the US wasn't at all like Greece! Hahaha looks like death by a thousand cuts instead, and this isn't from a tin foil hat site, either:


Three American cities on the brink of broke


By Sara Behunek, contributorMay 28, 2010: 1:06 PM ET


FORTUNE -- Several downtrodden cities are on the verge of defaulting on their debt, putting financially encumbered states and taxpayers on the hook to pick up the tab. The National League of Cities says municipal governments will probably come up $56 billion to $83 billion short between now and 2012. That's the tab for decades of binge spending; municipal defaults could be our collective hangover.

Municipal bonds, issued to fund public projects such as roads and public buildings, have historically been seen as one of the safest places to invest, which is why 80% of municipal bond holders are individual households and mutual fund investors, explains Jeffrey Cleveland, municipal bond analyst at Payden & Rygel Investment Management....