Mark the date: September 30 2010. Meredith Whitney, of Citibank doom fame, says next to be bailed out are the U.S states themselves - within 12 months.
"The U.S. government will face pressure to bail out struggling states in the next 12 months"
"...local issuers have taken on too much debt and that the gap between public spending and revenue is unsustainable".
She is not alone. She joins Warren Buffett in raising alarm bells about the potential for widespread defaults in the $2.8 trillion municipal bond market. She said state and
- Worst state: California
- 2nd worst states: New Jersey, Illinois and Ohio (tied)
“You take on more leverage to avoid long-term pain,”