Financialmarketsareglobal, notlocal, today, so the problem isn't that the failure of any single bank locks individuals or businesses out of the credit markets.
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.