Cities, Municipal Bonds and a Potential for Disaster

Analyst warns that cash-strapped U.S. cities could default on their debt

Thursday, December 23, 2010

There's hope that the U.S. can pull out of this economic slump it's in, but there's a potential disaster looming for states that could derail any economic recovery. Meredith Whitney, a financial analyst famed for predicting Citigroup's major debt fallout, made a new dire prediction.  She believes up to 100 U.S. cities could default on their municipal bonds. 

Louise Story, finance and Wall Street reporter for The New York Times, and WNYC senior reporter, Bob Hennelly, tell why some of these states are in trouble, and the effects of such a massive number of defaults.


Bob Hennelly and Louise Story

Produced by:

David J Fazekas

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.