Thursday, Nov 12, 2009
Lower tax revenue, high unemployment and increasing debt repayments are putting several US states under heavy financial pressure.
The hardest hit is California which is on the brink of insolvency, but a recent study identified nine other states suffering similar problems. With unemployment expected to remain high and federal stimulus money drying up next year, these problems are likely to continue.
Could a state government reach the point where it cannot meet it's financial obligations? Intrade yesterday listed markets on New York, New Jersey and California experiencing a "credit event" in relation to their bond issues, such as bankruptcy, default or failure to pay.
These markets can be found under Financial -- US State Gov Default.
Please be sure to read the contract rules before making any trades and please contact us at help@intrade.com if you have any questions.