Municipal bond-rating downgrades outnumbered upgrades by 3-to-1 last quarter, a decline from the peak ratio reached at the end of 2010, Moody’s Investors Service said.
SS SAYS
I V SAID LAST YEAR THAT MUNI DEBT IS A TICKING TIME BOMB
THIS WILL HURT THE US IN THE NEXT 3 - 5 YEARS
EXPECT MASSIVE DEFLATION WHEN THIS HAPPENS
STATES WILL BE IN DEEP TROUBLE
WE WILL HAVE A FEDERAL BUBBLE BURST
THIS IS ALSO ONE OF THE REASON WE WILL SEE THE DOW IN THE RANGE 7500 TO 10000
IGNORE THE LEMMINGS WHO SAY DOW IS HEADING TO 36,000
Moody’s cut 127 ratings of $71.6 billion of state and local debt and increased 43, totaling $4.2 billion, during the second quarter, according to a statement today. Borrowers downgraded included New Jersey, Hawaii and Chicago’s Cook County, Illinois.
The trend reflects the fiscal challenges faced by state and local governments, Naomi Richman, a Moody’s managing director, said in the statement. The municipal market will continue to “face pressure” as the economy recovers, she said.
“The news is somewhat more optimistic for states, but local governments still have a way to go,” Robert Kurtter, a managing director at Moody’s, said today during an economic summit atRutgers University in New Brunswick, New Jersey.
The ratio of cuts to increases peaked at 4.6-to-1 in the fourth quarter, and remains near historic highs, Moody’s said. Last quarter was the tenth-consecutive period that downgrades outnumbered upgrades, Moody’s said.
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