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Fallout from the subprime mortgage lending crisis has flooded into most sectors of the U.S. and world economies. Debris is likely to be washing up on the fiscal shores for years to come. And in the municipal market, states, among the largest and most stable vessels, are pitching with the waves. This year, we decided to look at real estate, property values, and the growing number of home foreclosures and how they are changing the landscape of state finance, not only this year, but perhaps for years to come.

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