Gary Palmer, president of the Alabama Policy Institute, says that Jefferson County may soon make history--but for the wrong reasons.

"If Jefferson County defaults on its bond debt," he says, "it will be by far the biggest financial failure of a government entity in U.S. history, almost three times larger than the $1.7 billion bankruptcy by Orange County, California in 1994.

The trouble stem from a scheme to finance a new sewer system. It may involve incompetence, corruption, or both.

Palmer concludes:

"Some people cite incompetence as the reason Jefferson County is in this mess. Others, apparently including the SEC, think corruption has had something to do with the county’s dire financial predicament. And there are some that think the county is simply the victim of bad luck related to the mortgage crisis and the slowing economy. The bottom line is, regardless of whether it is one or another or all of the above, Jefferson County is on the verge of bankruptcy. If that happens, the shock waves will be felt nationwide."