Page 13 - Chapter 9 News Today : Breaking News, Live Updates & Top Stories | Vimarsana

We have to make sacrifices. >> there has to be pain and sacrifice. pat buchanan, tom touched on it today, a county on long island being taken over by the state of new york. because it's insolvent. you look at the situation in connecticut, and other states that were supposed to be wealthy states, "the new york times" today saying they are awash in debt. this is a crisis. a crisis of epic proportions for us economically. >> it really is. you hear about the back rooms of congress, they're talking about a proposal whereby states like california and illinois can go chapter 9, which means they can s...

Pay the debts. >> reporter: it's extremely rare for a large municipality to go bully belly up and laws m it difficult for cities to file for bankruptcy known as chapter 9, but the downturn has more considering the worst-case scenario from jefferson county, alabama, to detroit, san diego and even los angeles. >> the economy is not getting better. we have high unemployment and the dollar is weak. the government spends way too much money at the federal level and the state level. the federal government is funneling tons of money in the state to keep them afloat which in turn gives it to local gove...

Pay the debts. >> reporter: it's extremely rare for a large municipality to go bully belly up and laws m it difficult for cities to file for bankruptcy known as chapter 9, but the downturn has more considering the worst-case scenario from jefferson county, alabama, to detroit, san diego and even los angeles. >> the economy is not getting better. we have high unemployment and the dollar is weak. the government spends way too much money at the federal level and the state level. the federal government is funneling tons of money in the state to keep them afloat which in turn gives it to local gove...

There will be support for the banks and there won't be any immediate collapse of the greek financial system. it will clearly heap further pressure on markets who are nervous about contagious many europe from a greek debt default. greek not the only issue as far as markets are concerned. they're watching puerto rico and concerns the governor came out and said the island will not be able to meet its own debt obligations. they have debt out standing of $73 billion. that story has gone all the way up to the white house. we understand that the white house is urging congress to have a look at what s...