They Were the First
We now have a state capitol in Chapter 9 bankruptcy. Harrisburg, PA has filed for protection. I guess wealth has become less common in the Commonwealth. The city fathers took one look at revenue projections and saw they would never cover bond payments. Translation: Local economic activity is not generating enough revenue to cover local infrastructure costs. This is a severe problem. And to divert ourselves from it, we can start speculating which municipalities will be next. Cities failing puts strains on counties; counties failing puts strains on states. And then of course there are schools, utilities, transportation districts, etc. And on top of that, what happens when the Chapter 9 plans start cutting masses of employees, and the ones still employed find their pay and benefits drastically cut? Suddenly those public sinecures aren't looking so secure.