California Bankruptcy Vallejo
Is the US heading for another great depression?
The avalanche of bankruptcies has begun. Six US companies of substance have defaulted on bonds over the past fortnight, against 17 for the whole of last year. Diane Vazza, S&P’s credit chief, says defaults are rising at almost twice the rate of past downturns. Some 174 US companies are trading at “distress levels”.
The California city of Vallejo (117,000 inhabitants) has just made history by opting for Chapter 9 bankruptcy, the result of tax erosion from a 26pc fall in local house prices. Half Moon Bay may be next.
Talk that the worst is already behind America seems to just be wishful thinking. In addition, forecasts indicate that the level of mortgage defaults will increase in 2008/2009 as a new range of non sub-prime mortgages ratchet up their interest rates.
How bad do you think this crisis will get?
I don’t believe the worst is over yet. It may turn around after a new president gets elected and that will take some time.<<<<<<<<<< The bankruptcy of Vallejo, California and Muncie similarity No related posts. Related posts brought to you by Yet Another Related Posts Plugin.
