Seven U.S. cities, mostly in older, industrial areas, are facing economic problems similar to those of Greece and Spain.
Moody's Investor Services and Standard & Poor's have identified debt pressures in the following cities as particularly heavy:
- Harrisburg, Pa.
- Woonsocket, R.I.
- Pontiac, Mich.
- Harvey, Ill.
- Littlefield, Texas
- Central Falls, R.I.
When cities default, vendors, such as road construction and garbage collection firms usually take a harder hit than bondholders because cities want to be able to borrow again.
Residents often feel the most pain, losing city jobs and services while being faced with higher taxes.