U.S. States’ Woes Aren’t the Next Greece, Samson Capital Says

U.S. states and municipalities struggling with mounting budget deficits “are not in the same precarious financial condition as Greece,” Samson Capital Advisors said.

The cost of protecting U.S. municipal bonds surged this year as investors bought insurance on U.S. state obligations after global stocks tumbled and Europe’s debt crisis worsened. New Jersey Governor Chris Christie told members of the Manhattan Institute on May 25 that the state is “careening our way toward becoming Greece.” Even so, states aren’t on the verge of default and such comparisons distract from more serious issues, Samson Capital said in a July 8 report.