Local Budgets

There has been some talk that the municipal bond market is going to bring trouble, and an analyst predicts hundreds of billions of dollars in defaults. Janet Babin looks into the matter.

A new report finds cities in pretty serious trouble. Financial analyst Meredith Whitney says we're about to see another economic crisis because of local economies failing. Eve Troeh has more.

Municipal bonds are usually quite popular because they are tax-free. But now that such bonds are coming from risky borrowers like California -- who is billions of dollars in debt -- local governments are beginning to pull the bonds because they're isn't much demand.