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.
  • Detroit
  • 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.