The U.S. government will face pressure to bail out struggling states in the next 12 months, said Meredith Whitney, the banking analyst who correctly predicted Citigroup Inc.’s dividend cut in 2008.
state and local issuers have taken on too much debt and that the gap between public spending and revenue is unsustainable.
Whitney said took two years to complete and hasn’t been released publicly, ranks California’s finances the worst, with New Jersey, Illinois and Ohio tied for second-worst
May, Buffett, whose Berkshire Hathaway Inc. owns and insures municipal debt, told shareholders at the company’s annual meeting that the federal government would likely bail out a state that faced financial distress.
Click on the following for more details: Whitney Says States May Need Federal Bailout in Next 12 Months - Bloomberg
No comments:
Post a Comment