State and local finances crumbling

As predicted, states and local governments are starting to feel the pinch of decreased revenues. As I've said before, they are completely underestimating the severity of these shortages and they will get massacred over the next few years. The news is starting to pick-up on this oncoming tsunami. It's getting overshadowed, however, by the larger financial crisis in the credit markets. This will only exacerbate the problem at local levels, as spineless politicians will refuse to cut costs far enough and will refuse to raise taxes high enough. This will leave borrowing as the only remedy for shortfalls and borrowing won't be cheap. All of this was predictable, yet the weak remain in power and the weak will continue to destroy the foundations of this country.


Alabama County Misses Bond Payment- Bloomberg
State, Local Tax Revenue Stagnates- Wall Street Journal
Under Strain, Cities Are Cutting Back Projects - New York Times