Forefront | Blog
Distressed States
With Governor Christie throwing his hat into the presidential ring of candidates I am wondering how much coverage will be made of New Jersey’s financial plight. While most of the focus has been on Greece, the bigger financial story will be how states deal with their financial crisis. Bond defaults in Greece are one thing but a distressed US state declaring a state of emergency could impact the financial markets more negatively. To date not much coverage has been given to New Jersey. However in terms of bond defaults, New Jersey may be at the top in terms of prospects but they are not alone. Illinois, Ohio, and Michigan are all rated a top 5 for potential state bond defaults. It will be interesting to see how political candidates respond to such issues.
