It looks like she is right

Whitney shed some light on the “60 Minutes” call earlier this month at the Milken Institute Global Conference. The states, she said, were cutting aid to localities. “The local municipalities have nowhere to go and their bias is to save their constituents before they save their bondholders,” she said. (Bloomberg)

To balance their budgets, U.S. states are cutting funds they send to local governments, worrying many in the $2.9 trillion municipal bond market, from cities to rating agencies.

Fitch Ratings said in a report Friday that school districts and counties will face their greatest funding reductions from states.(CNBC)

Is another crisis brewing? It cannot be good news for the economy.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.