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Municipal Bonds Train Wreck – Next Meltdown Predicted

December 28, 2010

60 Minutes reports: Star banking analyst Meredith Whitney has been saying for months that the next phase of the housing meltdown would be a local-government financial crisis. Last weekend she put a number on it, asserting that “hundreds of billions of dollars” of municipal bond debt would end up in default. Whitney, appearing on CBS’ “60 Minutes,” was interviewed on correspondent Steve Kroft’s segment on the “day of reckoning” for municipal finances.

View full segment, click here

Take a deep breath – more pain is on the way and it cannot be avoided this time as State governments cannot print money, or manipulate the markets like the Federal Reserve to avoid the municipal bond market train wreck. Just a note, Medicaid/Medi-Cal is State funded.

I want my readers to remember this moment so that in 2012 you vote for responsible leadership.

State Budgets Day of Reckoning articles, click here

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