State and Local Governments: A Looming Disaster
ContraryInvestor.com offers this graph, which shows the dismal state of state & local governments.
We will not spend any serious time here as you know full well what is occurring at state and local government levels. Does the following combo chart tell the story? There is simply no way state and local governments are about to embark on some type of balance sheet leverage acceleration any time soon in support us US systemic non-financial sector credit acceleration. No way. The pension issues that loom large in the decade ahead tell us the road of reconciliation will be long and hard for state and local governments. By the way, all of the numbers below are current through YE 2010.
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