The city of Stockton, Cal., is facing a $26 million budget deficit amid rising crime and foreclosure rates. Unable to reach an agreement with its creditors, the city has voted to file for bankruptcy, in what will be the largest city bankruptcy filing in U.S. history.
As Spain wrestles with its economic troubles, attention is focusing on the community banks, the cajas, that for a long-time were the lifeline of communities, making small loans to businesses and individuals. But somewhere along the way, those banks got into trouble and are now as much of a threat to Spain's economy as their larger cousins.
A flawed highway construction project has put the Massachusetts Bay Transport Authority nearly $9 billion in debt. The costly project forced MBTA officials to answer two fundamental questions about their 100-year-old system: Who benefits from it and ultimately, who should pay for it?
Spain's banks got a badly needed injection of recapitalization over the weekend when a trio of international lenders agreed to loan them funds to get on firmer footing. But while Spain insists this isn't a Greece-style bailout, the lenders are already moving to monitor how and on what Spain is spending their money.
Greek hospitals have been accused of threatening not to release babies after they're born, unless their parents pay the bill for the delivery. Others are accused of withholding birth certificates. All of this because the Greek budget crisis has eroded health insurance coverage and hospital budget cuts.
In Greece, the government is moving to another round of elections after the latest round produced no viable government. Meanwhile, economists are worried that the instability between now and then could cause economic havoc, not the least of which is Greeks who are pulling their savings out of Greek banks in fears that a default could cost them their life savings.
Detroit has been hit hard by the recession. Once known as the "Paris of the Midwest, Detroit is now the poorest major city in the United States. City officials are in the midst of numerous efforts to stave off bankruptcy, but they're struggling to keep residents happy.
What is the great divide splitting America? Republican and Democrat? Male and female? Black and white? Esquire columnist Stephen Marche thinks there is a profound, and ever widening gap between young and old Americans.
Across the European continent, there's a growing belief that austerity is killing those country's future, and it's growth, not spending cuts, that is needed to turn things around. But there's a tension between the need to balance the budget and the desire to grow.
Nicholas Sarkosy has a tough battle in front of him if he wants to remain in office when the second, runoff round of the presidential elections happens on May 6. His challenger, Francois Hollande, has promised to reverse some of the austerity measures championed by Sarkozy.