Writedown America?

The USA is made up of 50 states, each state is made up of lots of localities, referred to as municipalities. So while the USA may be AAA, it would stand to reason that if every state was marked down that you couldn’t have a country that is AAA when the sum of its components isn’t, equally, on a smaller scale could you assume each state is top class if the sum of their parts are not? This is the situation we have currently in the US.

Moody’s has placed all municipal bonds on a negative outlook. That means that every single bond financed municipal project, irrespective of jurisdiction is now on a negative outlook. What kind of projects are these? They can be anything from making a train line to a reservoir and the loan is paid back when the local/state authority then charge people for its use.

However, the US state and local authorities have a second wave issue they are facing, the same tax collection collapse that is the hallmark of federal or …

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