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.
Forget all the nicknames attached to Chicago for generations — Windy City, City of Big Shoulders, the City that Works. This gleaming metropolis of 2.7 million people is now, along with Detroit, junk city.
When Moody’s Investors Service downgraded Chicago’s debt on Tuesday to junk status, it deepened the city’s financial crisis and elevated comparisons to the industrial ruin 280 miles to the east.
In the world of central banking slow, steady and predictable decisions are the aim. So when bankers meet in the dead of night and raise interest rates by a massive 6.5 percentage points it suggests something is going very wrong.
Lucas Papademos, the ex-technocrat prime minister of Greece says public finances face collapse.
Greece’s public finances could collapse as early as next month, leaving salaries and pensions unpaid unless a stable government emerges from the June 17 election, according to Lucas Papademos, the technocrat prime minister who left office after this month’s inconclusive vote.
Untenable pension promises made by corrupt politicians to corrupt unions in an unholy alliance is about to sink another city. Please consider Providence is facing bankruptcy
Rhode Island's capital city will be in bankruptcy by June if it doesn't get help resolving its financial crisis.
IMF and EU auditors arrived in Athens on Tuesday to audit state finances and progress on bailout conditions, finance ministry sources said, as the new government warned that a bad recession had turned worse.The audit by inspectors from the EU, European Central Bank and International Monetary Fund is expected to take weeks and comes as Greece's new conservative government takes the full reins of power after winning elections on June 17.
Hickey and Walters (Bespoke) submit:
Heading into 2011, most investors would agree that the worst of the credit crisis is behind us. That being the case, there are still many analysts who believe that the next domino to fall will be the finances of states and municipalities.