{"id":1496,"date":"2014-11-12T15:44:50","date_gmt":"2014-11-12T20:44:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1496"},"modified":"2014-11-12T16:05:06","modified_gmt":"2014-11-12T21:05:06","slug":"oftwominds-charles-hugh-smith-which-citiesstates-will-be-the-first-to-default-when-the-economy-rolls-over","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1496","title":{"rendered":"oftwominds-Charles Hugh Smith: Which Cities\/States Will Be the First to Default When the Economy Rolls Over?"},"content":{"rendered":"<p><a href=\"http:\/\/charleshughsmith.blogspot.ca\/2014\/11\/which-citiesstates-will-be-first-to.html\">oftwominds-Charles Hugh Smith: Which Cities\/States Will Be the First to Default When the Economy Rolls Over?<\/a>.<\/p>\n<p style=\"display: inline; height: 0px; overflow-x: visible; overflow-y: visible; padding: 1px 0px 1px 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><i style=\"background-color: white; padding: 0px; margin: 0px;\">What happens to local governments when the economy rolls over?<\/i><\/span><\/p>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/b><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\">Though we&#8217;re constantly reassured the &#8220;recovery&#8221; that&#8217;s stumbled for five years has years of strong growth ahead, history suggests the &#8220;recovery&#8221; is due to roll over.<\/b>\u00a0Few recoveries last longer than 5 or 6 years, and the business cycle is graying fast: subprime auto loans are not exactly the foundation of &#8220;strong growth.&#8221;<\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\">So what might push the economy over the cliff?<\/b>\u00a0The strong U.S. dollar is crimping overseas sales and profits, the global economy is already recessionary, mortgage applications have dried up, auto sales are being driven by subprime loans, and the valuation bubbles in stocks and real estate are due for a breather, if not an outright reversal. Retail sales are flat, and with all these headwinds, growing profits by 10% to 20% a year becomes impossible for the vast majority of enterprises.<\/span><br style=\"padding: 0px; margin: 0px;\" \/><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\">So what happens to local governments when the economy rolls over?<\/b>\u00a0Tax revenues decline.<\/span><br style=\"padding: 0px; margin: 0px;\" \/><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\">The consensus is that local governments are sitting pretty: sales and property values have risen smartly, pushing tax revenues higher, and the cost of borrowing money via tax-free municipal bonds has fallen. Nice, but these are all functions of expansion and rising tax rates.<\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\">&#8230;click on the above link to read the rest of the article&#8230;<\/div>\n","protected":false},"excerpt":{"rendered":"<p>oftwominds-Charles Hugh Smith: Which Cities\/States Will Be the First to Default When the Economy Rolls Over?. What happens to local governments when the economy rolls over? Though we&#8217;re constantly reassured the &#8220;recovery&#8221; that&#8217;s stumbled for five years has years of strong growth ahead, history suggests the &#8220;recovery&#8221; is due to roll over.\u00a0Few recoveries last longer [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,1072,670,1073],"class_list":["post-1496","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-municipalities","tag-recovery","tag-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1496"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1496\/revisions"}],"predecessor-version":[{"id":1498,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1496\/revisions\/1498"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}