CMA tracks market indicators on the probability of bankruptcy for governments around the world. The State of California is now in its list of the ten governments most likely to go bankrupt in the next five years, sandwiched between Lebanon and Latvia:
Hat tip: Credit Writedowns
California's probability of bankruptcy is listed as 20%. The fact that it isn't higher may spur the legislature on to greater spending.
Last week, Greece was rated number 1 most likely to go bankrupt but, thanks to the bail-out plan, it is now ranked only at #4.
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