This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Cities Vulnerable to the Next Bursting Bubble

Pittsburgh, Pa.
Unemployment rate: 7.4%
Largest employer: The University of Pittsburgh Medical Center
It's almost a shame a town so hard hit by the industrial decline of the late 1970s and early 1980s has become a perfect storm of bubbles. The University of Pittsburgh is still one of the town's largest employers, the empty manufacturing facilities are being populated by tech startups and arguably the biggest employer in town is the University of Pittsburgh Medical Center -- which is, yes, separate from the university from which it takes its name.

The last may be the most volatile of Pittsburgh's three rivers of revenue, as Pittsburgh and other health care heavy towns such as Augusta, Ga., and Boston may not have to wait for the baby boomers to blow through to see their bubble burst. According to health care consulting firm Millman, American families insured through their jobs are racking up an average of $19,393 in health care costs, up 7.3% from last year. The roughly $8,008 they're paying out of pocket is 9.3% higher than it was last year and only slightly more expensive than the $9,235 they averaged in total costs in 2002, when their out-of-pocket costs were $3,634.

In fewer than nine years, the cost of health care has more than doubled. Hospital spending, which is only 48% of total health care spending, accounts for 60% of the increase. If you consider this kind of growth unsustainable, join the club. The nation's still sharply divided over President Barack Obama's health care plan and GOP candidate Mitt Romney is among those with a plan of his own, which means 2012 could be another take on the of the midterm elections many considered a de facto referendum on the issue.

None of this posturing has cut so much as a cent from costs, and communities that lean heavily on their hospitals will bear the brunt of it. Pittsburgh knows this too well already; a University of Pittsburgh Medical Center hospital in its Braddock neighborhood was closed just last year.
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.82 0.91%
CSCO $27.28 -0.55%
INTC $34.37 -0.32%
MSFT $54.27 0.15%
TSLA $218.20 0.21%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs