Ferguson, Missouri was ground Zero for violent protests against police officers nationwide after the police shooting death of Michael Brown that was ruled justified by federal authorities.
And what has been the effect?
First, home prices in the St. Louis suburb have plummeted 50%.
Since Brown's death in August and the protests that followed, home prices have been steadily declining, according to housing data from MARIS, a real estate information service.
Before Brown's death, the average home sold in 2014 for $66,764 in Ferguson. For the final three and a half months of 2014, the average home sold for $36,168 – a 46%.
So far in 2015, prices are continuing to tumble, with homes now selling on average for $22,951.
Now Moody’s Investors Service has cut its rating of the city’s credit to junk status.
Bloomberg has the latest:
Ferguson could become insolvent by the 2017 fiscal year, the credit-rating company said. The rating cut reflects “severe and rapid deterioration of the city’s financial position, possible depletion of fund balances in the near term, and limited options for restoring fiscal stability,” Moody’s said.
Ferguson became a national symbol of racial unrest after a white police officer killed an unarmed black teenager there last year. The fatal shooting and a grand jury’s decision not to indict the officer set off violent riots in the city and demonstrations across the country.
Moody’s rating on the city’s general-obligation bonds was lowered from Aa3 to Ba1, one level below investment grade.