Monday, September 13, 2010

FT.com / US / Economy & Fed - US state steps in to meet city’s debt cost

FT.com / US / Economy & Fed - US state steps in to meet city’s debt cost
The state of Pennsylvania has stepped in to help its capital city Harrisburg avoid a default by advancing next year’s state aid so that the money can be used to make a $3.3m bond interest payment due this week.
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It seems to me that the policy makers of this country and the educated population ought to be figuring out how to restructure the financing of state and local governments, before we have a housing-industry-style, sector-wide, meltdown. Doesn't seem to be a major concern, though.

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