Moody's named a number of cities whose fiscal health it will review and implied that some sort of blanket downgrading of local municipal bond issues may result – a step that could slam the brakes on governmental borrowing.
Moreover, the distress is not confined to cities, since dozens of school districts are already on state fiscal watch lists and one, Inglewood Unified, was just placed under direct state supervision as a condition of an emergency loan to stave off insolvency.
Each city or school district in bankruptcy or flirting with insolvency is a different case, of course. The city of Mammoth Lakes, for instance, filed for bankruptcy after losing a huge lawsuit over a development project.
Monday, October 22, 2012
Dan Walters: Bankruptcy filings by California cities may spread
Man, I can't help but wonder when this is going to end...