The credit crisis is spreading

A run on the Florida Local Government Investment Pool which left some schools and municipalities unable to pay the bills really brought home just how far the current crisis has spread. So where might problems crop up next?

"There is a moment in every financial crisis" when the average person realises that "far-off shrieks from Wall Street could lead to pain closer to home", says Dwight Cass on Breakingviews.

Enter the state of Florida's Local Government Investment Pool, used by the state's schools and municipalities for short-term investing and everyday expenditure.

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