Meredith Whitney is issuing a fresh warning to mutual funds, banks, and politicians: The state of state finances is far worse than you think, or at least than what you've been willing to tell the investors and taxpayers who will eventually carry the burden. In a new report released today to her clients, Whitney summons what appears to be the most comprehensive set of data ever assembled on state budgets and debt. Meredith Whitney, still focused on state finances.
Madrid Threatens Intervention as Regional Debt Worries Mount
The Financial Times reports Madrid threatens to intervene in regions
Madrid has threatened to seize budgetary control of wayward Spanish regions as early as May if they flout deficit limits, officials said – as investors took fright at the fragility of some eurozone economies.
It’s insufficiently appreciated just how much of a problem the state of the public finances poses for the Left. The difficulty is: how can public borrowing be reduced without sacrificing leftist objectives?
David Shvartsman submits:US states are in rather poor shape, financially speaking, and California's latest debt downgrade has shined a light on this topic once again.This brings us to today's question: are California's fiscal problems indicative of a larger trend toward deteriorating state finances and budget shortfalls?