A persistent drought in Texas is hurting the finances of a small town, making it unable to pay bondholders in a rare instance of climate-related default.The...
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The original was posted on /r/collapse by /u/PuIchritudinous on 2024-08-21 02:40:35+00:00.

The city of Clyde, Texas, defaulted on its water system debt due to financial strain caused by a severe drought. The drought reduced water sales, leading to a significant drop in revenue and the city’s inability to make a bond payment. As a result, Clyde’s credit rating was downgraded, and bond insurers had to step in.

This situation illustrates how climate-related events like drought can destabilize local economies, contributing to broader concerns about societal and economic collapse in the face of environmental stressors