the US deficit and debt.
Here are some highlights from media reports:
1. The spread on debt between German and Irish two-year paper hit an all-time
high of 825 basis points amid concerns that Ireland will miss the next
payment on its sovereign paper. Irish officials have rejected higher corporate taxes which makes a default more likely. This will likely cause similar concerns about the debt of other troubled EU nations.
2. A major fiscal battle has begun between the governor and state legislature in
Minnesota. The State House wants to set spending for the next fiscal
year at $3.6 billion and protect most funding for education. Gov. Mark Dayton has no such intentions. He has suggested raising taxes
3. Wall St. analyst Meredith Whitney is still a bear on state bond defaults.
She expects 25 to 50 sizable defaults among state and municipal debt.
It is still unclear whether a whether a state can declare bankruptcy.
Jonathan Berr and Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks