At a time when multiple California cities are struggling with bankruptcy and budget cuts, the third-largest city in Los Angeles County is enjoying the benefits of managing its finances.
The move comes after Standard & Poor’s said last week it would be downgrading the city’s $8 billion investment portfolio from AAA to AA.
Residents across Los Angeles are rattled by the staggering stock market plunge. The stock market buckled Monday under the weight of a crisis in Europe and danger of recession at home. Reeling from a downgrade of American debt, the Dow Jones industrials plunged 634 points.
Another credit downgrade for two of the nation’s biggest loan agencies could leave more Angelenos digging deeper into their pockets.
Home prices are falling in most major U.S. cities, and the average prices in four of them are at their lowest point in 11 years. Analysts expect further prices declines in most cities in the coming months.