Here’s a good segment from CNBC with an interview from two city mayors, the mayor of El Centro, CA that has 26.9% unemployment, the highest in the nation, and the mayor of Flint, MI, which is imploding due to the decline in the U.S. car industry.
Interestingly, CNBC has another article on its website showing that joblessness is rising EVERYWHERE. California is one state that is getting hit hard. Its jobless rate is now at record highs (hat tip Judith). If you are investing in municipal bonds, despite the happy talk, especially by Flint’s mayor, none of this should leave you feeling particularly comforted. As a taxpayer or receiver of services in states like California, Michigan, Oregon, Rhode Island and South Carolina, get ready for tax hikes, service cuts or both.