Infrastructure Spending Coming to a Halt???

This whole write up is pretty good but their number 5 below I found huge. I had been spending alot of time evaluating infrastructure stocks because I thought that they were getting beat down just as badly as homebuilders and building product guys and that government spending on things like bridges and highways would remain strong. HOLD EVERYTHING. That thesis may be very wrong.

http://www.minyanville.com/articles/index.php?a=15185

5. Cleveland Introduced to Deflation

According to Cleveland.com, the website for "Everything Cleveland," Cleveland Mayor Frank Jackson said the city is working to stave off a money crunch that could jeopardize large capital projects on the horizon.

A) At stake are projects ranging from roads and bridges to a $1.5 billion plan for the city's Warehouse District, all of which rely on the city's ability to borrow money.

B) "There's no room for us to borrow money," Jackson said in an interview with the Plain Dealer.

C) Why the problem?

D) Largely because declining real estate values, and successful property tax appeals by property owners, have cut into the assessed value of real estate.

E) "What I don't want is anyone to interpret this in any way to discourage investment or induce panic that the world is ending, because it's not," the mayor said.

F) No, it's not ending, it's just deflating.