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$2Tn Debt Crisis Threatens To Bring Down 100 Us Cities

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

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."

New Jersey governor Chris Christie summarised the problem succinctly: "We spent too much on everything. We spent money we didn't have. We borrowed money just crazily. The credit card's maxed out, and it's over. We now have to get to the business of climbing out of the hole. We've been digging it for a decade or more. We've got to climb now, and a climb is harder."

American cities and states have debts in total of as much as $2tn. In Europe, local and regional government borrowing is expected to reach a historical peak of nearly €1.3tn (£1.1tn) this year.

Cities from Detroit to Madrid are struggling to pay creditors, including providers of basic services such as street cleaning. Last week, Moody's ratings agency warned about a possible downgrade for the cities of Florence and Barcelona and cut the rating of the Basque country in northern Spain. Lisbon was downgraded by rival agency Standard & Poor's earlier this year, while the borrowings of Naples and Budapest are on the brink of junk status. Istanbul's debt has already been downgraded to junk.

Whitney's intervention is likely to raise the profile of the issue of municipal debt. While she was an analyst at Oppenheimer, the New York investment bank, in October 2007 she wrote a damning report on Citigroup, then the world's largest bank, predicting it would cut its dividend. She was criticised for being too pessimistic but was vindicated when the bank was forced to seek government support a year later. She has since set up her own advisory firm and is rated one of the most influential women in American business.

So will we see the US taxpayer bailout the local US taxpayer.

This problem has been highlighted many times but this is the first real prediction that the damn is going to burst.

How will they manage to paper over the cracks this time and stop the implosion?

Viva recovery.

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

So will we see the US taxpayer bailout the local US taxpayer.

This problem has been highlighted many times but this is the first real prediction that the damn is going to burst.

How will they manage to paper over the cracks this time and stop the implosion?

Viva recovery.

We will be old HPCers sat on our commodes talking about this about to happen.

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http://www.guardian.co.uk/business/2010/dec/20/european-cities-in-debt-crisis

Overdrawn and over here: European cities also threatened by debt crisisIstanbul, Florence, Naples, Madrid, Barcelona: cities across Europe are facing funding shortfalls and credit downgrades
Share12 Elena Moya guardian.co.uk, Monday 20 December 2010 20.21 GMT Article history

Looks like it may be a global problem that only started in America. Makes sense really when you think of the HPI in Europe as a whole and the same level of banksterism.

Rumours going around that the US is not the only country with trillions in debt. :ph34r:

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Zim Pussies.

This is proper inflation.

HUP_100MB_1946_obverse.jpg

The 100 quintillion (1020) Hungarian pengő.

Eventually replaced by the forint where one forint was worth 400,000,000,000,000,000,000,000,000,000 or 4×1029 (400 octillion) pengő.

Hungarian inflation peaked at over 200% a day, or 42,000,000,000,000,000 % a month.

Zimbabwe only managed 80,000,000,000% a month.

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Debt defaults are going to cascade right the way up the chain.

Surplus countries are going to be screwed.

Hey ho suckers!

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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