100 US cities threatened by $2 Trillion debt crisis

city and gov't can't default on loans.

they have taxpayers and the city own land...bondholders of muni bonds have lien on city assets like corporate bonds..

what would most likely happen cities can't run deficits anymore and have to layoff etc.

muni gov't would have less infrastructure spending and less jobs...in muni gov't...etc...cuts as interest rates demand by muni bond market is too high or no lenders.

Quote from bearice:

Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble.

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.

Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery.

"Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy," Whitney told the CBS 60 Minutes programme on Sunday night.

"There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults."

http://www.guardian.co.uk/business/2010/dec/20/debt-crisis-threatens-us-cities
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At best the residential real estate market is worth $23 Trillion. The stock market is valued at less than $25 Trillion. The current administration is supposedly trying to save the U. S. economy from collapsing and yet the economy is valued at only a little over $14 Trillion.

http://www.goldandsilvereconomy.com/

According to the Milken Institute, U.S. residential real estate is valued at over $23 trillion, making it one of the most valued asset categories in the U.S. and surpassing the $11 trillion market value of all New York Stock Exchange (NYSE) listed stocks combined.

http://knowledge.emory.edu/article.cfm?articleid=702
 
Quote from wilburbear:

A relative was recently in Flint, MI.

He saw a hand-lettered sign - "Free houses".

After thinking about it, the houses were still too expensive. My relative didn't get one, and neither did I.
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How can a house be free and expensive at the same time?

Please explain
 
am thinking that since we picked up four electoriable votes at the 'spense a NY, NJ and PA that we should goraciously accept all Yankee re-fuggees.

_______________________________________________________

LOL, I'm one of them. I'm a Yankee by way of Chicago to Texas. Been in Texas for about 5 years. Love most of it. Plenty of money to be made and cities like San Antonio, Houston, Dallas and ATX are still great places to make money. Even though there is unemployment, is nothing like the rest of the country. And oh yea, Guns. More Guns and Ranches and Freedom than any other state other than Montana...and not many people live in Montana..lol.

We did pick up the 4 seats. However, it was due to the Mexican Population. Gota be careful with that as Mexican's can turn Democratic, Free-loading scumbags pretty fast. So far, most are hard working, tax paying in my area. We are also getting a huge influx of very wealthy Mexicans relocating their Companies and spending a lot of money on Houses. But there is the one element of Illegal...that we have to watch out for.
 
Quote from misterno:

How can a house be free and expensive at the same time?

Please explain
More...
If I may interject...

A house is never free, innit? It might cost you nothing upfront to buy, but that's an entirely different kettle of fish.
 
Quote from bearice:

Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble.

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.

Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery.

"Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy," Whitney told the CBS 60 Minutes programme on Sunday night.

"There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults."

http://www.guardian.co.uk/business/2010/dec/20/debt-crisis-threatens-us-cities
More...

Quote from limitdown:

thank you George Bush II for all your hard work,
and your brilliant economic policies that made all these:

  • [*]bailouts and
    [*] TARP's,
    [*]and Madoff's,
    [*] and mortgage crisis(es) and foreclosures,
    [*]and record individual bankruptcies,
    [*]and record Statewide and Municipality wide insolvancies,
    [*] and record undisclosed, unfunded corporate welfare programs,
    [*] and unwinding of the US middle class finances,
    [*] and for equally brilliant Alaskan speakspersons,
    [*] and ....
    [*] and .....
    [*] and .....


Mission Accomplished!
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