
Overdrawn US cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. But as cities are choosing between devastation and default, analysts say really it's about the fall of American cities and the coming collapse of the Union. It's the reality America cannot escape, news of debt cash-strapped cities and states all over the country. All together it could amount to two trillion dollars and a bill many of them may not be able to pay. "The problem of the state and local debt is more serious than the real estate bubble," said Michael Hudson, Wall Street analyst and professor of economics at the University of Missouri. Serious because with millions of Americans still unemployed and losing their homes, there isn't enough taxpayer money to pay creditors. Local governments which aren't allowed to operate in the red must come up with the cash. This means some may be choosing between default and devastation. "I think most cities will be able to avoid default by cutting services," said Joe Weisenthal, deputy editor at The Business Insider. Cities and states coast-to-coast seem to be trying the latter route and the toll it's taking on the streets of America is undeniable. Camden, New Jersey is the second most dangerous city in the country. You didn't see many cops on the streets to begin with and now you may rarely see any. The city's had to lay off nearly half of their police force. In Detroit a <b>...</b>
Crisis
Politics
Budget
USA
Economy
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