3 Huge Cities Next In Line For Bankruptcy

None of these US hubs is too big to fail, and that should scare investors

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3 Huge Cities Next In Line For Bankruptcy

New York City

When adjusted for population, New York owes $20 billion more for retiree health care than Detroit, or a total of $88.2 billion.

On top of those obligations, the Big Apple owed pensioners $69.9 billion more than it set aside as of last year’s annual report. Again, adjusted for population, that’s $28 billion more than Detroit owes.

One of the reasons New York City can’t balance its annual budget is because it has to spend one-third of its revenues on health, retirement benefits, and debt. New York’s budget has run an operating deficit six of the past seven years (with the shortfalls covered by pre-2008 surpluses).

Article printed from InvestorPlace Media, http://investorplace.com/2014/03/cities-bankruptcy-chicago-new-york-los-anegeles/.

©2015 InvestorPlace Media, LLC

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