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State Debt Worse than Thought?

Photo Courtesy - Getty Images(WASHINGTON) -- Hidden state debts could cause an unexpected crisis as the economy continues to recover, The New York Times reported Sunday. California, Illinois, New Jersey, and New York, are some of the states accused in the article of borrowing and using financial tricks to pay their debts, adding new debts that are often off the books.

States presently have $2.8 trillion dollars worth of debt, but that number could be drastically worse with extraneous debts. Adding to fears of a worsening debt crisis, state credit ratings have gone up because investors believe the federal government backs up states financially. The concern now is how long these problems can last.

Copyright 2010 ABC News Radio

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