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)