Day By Day

Friday, September 03, 2010

"The Junkiest City in America"

From CNN:
NEW YORK -- The capital city Pennsylvania is broke and will be skipping this month's multi-million dollar bond payment.

On Sept. 15, Harrisburg, Pa., was scheduled to make a $3.29 million payment on the bonds it issued to build a trash plant. But, the cash-strapped city doesn't have the dough. 

"The city's budget is in deficit," said Chuck Ardo, spokesman for Harrisburg Mayor Linda Thompson. "We're looking for ways to trim the budget just to keep services going."

"Now the chickens have come home to roost," the mayor said in a statement released Wednesday.
In May, Moody's knocked the rating on its general-obligation bonds three notches to B2 -- five steps below investment grade. To put that into perspective: Moody's rating on Greece's government debt sits at A3 -- still investment grade.
So Harrisburg's rating is below that of Greece! Way to go guys. And of course they are going go be looking to the State to bail them out. If not, they're going to be bankrupt.

Read it here.

No comments: