He says cities are getting hit on all sides, declining local and state revenues combined with frozen creditmarkets and the prospect of a deep national recession.
It is running at two speeds: steady local demand boosted by credit and strong labor markets on one side, and a weaker industrial and export economy facing strong, imported competition and less demand from the U.S. and European trading partners.
But for emerging markets, such flows have traditionally been a mixed blessing, exacerbating localcredit booms, and pushing up the value of their currency.