The Coming Local Government Credit Crunch

Federal crowd-out and inflation risk will make it hard for states and cities to borrow.

Nicole Gelinas Says Barack Obama's $3.6 Trillion Budget Could Overwhelm Credit Markets:

President Barack Obama's $3.6 trillion budget designates $36 billion for transportation infrastructure. State governors and legislatures should spend that money wisely -- and even more importantly, they should use the remaining $229 billion they're getting in stimulus money to put their fiscal houses in order. If they don't, they risk burdening their constituents with devastating taxes in the near future. Read on.