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The issue of over-spending by US municipalities has been evident for a long time but has also been overshadowed the European sovereign crisis. But in a sense both crises are similar in that participants overspent and were supported in doing so by the larger securities industry. (We have even read on Bloomberg and elsewhere that municipal insolvency is going to be complicated by a burgeoning, trillion-plus bid-rigging scandal that involves Wall Street's largest firms, municipalities and states.)