Published: 21 Dec 2010
Last Updated: 09 Oct 2013
The analyst who predicted the global credit crunch has made a new and worrying prediction for the US, which could impact on other European cities.
Meredith Whitney, the renowned Wall Street analyst, told a CBS news programme that the US government faces bailing out up to 100 debt-ridden states next year, which could threaten the country’s economic recovery.
The American news programme suggested that US states have spent nearly half a trillion dollars more than the amount they collected in taxes. Whitney drew comparisons between the financial practices of the city governments with those of the banking industry just before the recession.
And the problem isn’t just confined to the US. Some European cities were forced to move away from the more traditional habit of borrowing from banks, as regional deficits grew. Florence, Barcelona, Madrid and Venice are among the European cities in trouble. Watch this space…
Meredith Whitney, the renowned Wall Street analyst, told a CBS news programme that the US government faces bailing out up to 100 debt-ridden states next year, which could threaten the country’s economic recovery.
The American news programme suggested that US states have spent nearly half a trillion dollars more than the amount they collected in taxes. Whitney drew comparisons between the financial practices of the city governments with those of the banking industry just before the recession.
And the problem isn’t just confined to the US. Some European cities were forced to move away from the more traditional habit of borrowing from banks, as regional deficits grew. Florence, Barcelona, Madrid and Venice are among the European cities in trouble. Watch this space…
