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Cities that Could Go Bankrupt

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Description
FBN’s Peter Barnes breaks down the cities that could be next to file for bankruptcy in the U.S.
Duration 0:59
Date Jul 12, 2012

This transcript is automatically generated

San Bernardino California the latest city to file for bankruptcy so here's a question what -- -- our next Peter Barnes of -- the Washington Peter.

Why Charles are a lot more struggling communities.

Nationally start going -- higher expenses and employee pension obligations and possibly facing bankruptcy as well like San -- out.

Take a look at this map we put together there are four cities.

That have junk bond ratings junk bond ratings from two or three of the major debt ratings companies.

Detroit is the big one followed by Littlefield Texas and two communities in Rhode Island -- socket and east Providence.

And then there are another 22 localities that have junk bond ratings from at least one.

Of the ratings companies Richards sets around on the -- research -- McDonnell investment management Chicago a big Muni bond.

Investors says that maybe five to seven of these communities could go bankrupt and the next two years Charles Peter Morris thing.