It's coming, say some of the same people who warned of the subprime meltdown. Mass bankruptcies of cities followed by weaker states going under, pulling stronger states with them. It's the Euro-debt crisis brought home to America via the probability that sometime soon, investors will be unwilling to underwrite more debt for many cities and states, causing defaults that could rattle our economy to its foundations. This is where analysts see the national government stepping in out of dire necessity - despite the probability of strong opposition from both sides of the aisle.Municipal bankruptcies or defaults have been extremely rare - no state has defaulted since the Great Depression, and only a handful of cities have declared bankruptcy or are considering doing so.But the finances of some state and local governments are so distressed that some analysts say they are reminded of the run-up to the subprime mortgage meltdown or of the debt crisis hitting nations in Europe.Analysts fear that...(Read Full Post)