Schools will close
Firehouses will close
Roads won't be repaired
Workers will be laid off
Crime will soar
Cities will go into decline
Tax rates will go up
This will not be pretty. Especially in LA, Phoenix, Vegas, Miami, Tampa and San Diego.
You'll also start hearing soon about cities defaulting on their debt, and going bankrupt. We're just days away from that.
You would have thought after the dot-com bubble that local and state governments would have learned their lesson and prepared for a rainy day. But this bubble bust will hurt them so much worse as they lose their sales tax revenue (so long HELOC buying binges) as well as their real estate taxes which will plummet along with the price of the taxed properties.
We're still just getting started. We know the cause, now it's time to see the effects.