Why the U.S. States Are Not the Next Greece
The purpose of this commentary is to parse out some of the psychology facing the market by presenting data without political overtones and by dialing down the vitriolic tone. It is our contention that California and other states are not in the same precarious financial condition as Greece. Trends in US state revenues however, are weaker as economic activity continues to be lower in the aftermath of the 2008 near collapse of our financial system. Changes in resource allocation and spending choices are necessary and will continue for the foreseeable future.