Investors Fear Rising Risk of US Regional Defaults

Investors Fear Rising Risk of US Regional Defaults - CNBC
"Investors are worried that the risk of default for US local governments is growing, amid signs that some regions are facing the same type of difficulty in curbing pension and budget deficits as some eurozone countries"

“The risk in the second half of the year is that investor attention switches from Europe to the US,” said Robert Parker, senior adviser at Credit Suisse Securities, who singled out parts of California, as well as towns and cities in Illinois, Michigan and New York state as among the most vulnerable.
“You will see investor concern about the viability of those cities and therefore you will see, inevitably, further spread widening in the municipal bond market.”