Just a day after Puerto Rico's governor pulled the default rip-cord, the clock is ticking for Atlantic City Mayor Don Guardian.
According to the Press of Atlantic City, the city is expected to run out of money in a matter of weeks, and the short-term picture looks grim. Not only is a $1.8 million bond payment due today, but a $7 million payroll payment is set for Friday as well.
With the city sitting on $500 million in debt, and with budget deficits topping $100 million, default and perhaps bankruptcy looks imminent without a major bailout from the state.
New Jersey Governor Chris Christie had reportedly reached an agreement to take over Atlantic City's finances back in January in order to try and stem the fallout on New Jersey's tourism, and also the credit rating concerns that other municipalities would have to deal with in New Jersey, but the deal has fallen apart.
"I can't trust him. Steve and I thought we had a deal with an honorable guy. Now he wants me to call him? And say what exactly? You want a new deal? I try only to deal with honorable people." Christie was quoted as saying regarding the deal falling through.
If the city defaults and subsequently enters into bankruptcy, the plea for helicopter money may be too much for the Fed to ignore, as other cities will surely follow suit.
A press conference is set for 11am EST today which you can watch live here…
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via http://ift.tt/1Y35ZAE Tyler Durden