2011 will be the year of the municipal default. At least that's what analysts like Meredith Whitney predict, as do bond investors that have been fleeing the muni market.
There are many reasons to be worried. First, the expiration of Build America Bonds will make it harder for cities to raise funds.
Second, city revenues are crashing and keep getting worse. Property taxes haven't reflected the total damage from the housing crash. High joblessness is cutting into city revenues, while increasing costs for services.
To read the full, original article click on this link: 16 US Cities Facing Bankruptcy If They Don't Make Deep Cuts In 2011
Author: Gus Lubin and Leah Goldman
