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Current Events => Economics => Topic started by: bijou on June 04, 2012, 06:38:24 AM

Title: Stockton, Calif. May Be The Next City Driven To Bankruptcy
Post by: bijou on June 04, 2012, 06:38:24 AM

Quote

Add Stockton, California (population 292,000) to the list of cities bankrupted because of bad management and over-generous public union wages and benefits.

Please consider New Stockton City Hall building seized by Wells Fargo; city preps bankruptcy contingency plan

The Stockton City Council announced Wednesday that they will look at bankruptcy contingency plans after Wells Fargo seized the new city hall building.

Read more: http://globaleconomicanalysis.blogspot.com/2012/06/wells-fargo-seizes-stockton-california.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29&utm_content=Google+Reader#ixzz1wp92bVAH

Title: Re: Stockton, Calif. May Be The Next City Driven To Bankruptcy
Post by: JohnnyReb on June 04, 2012, 06:43:41 AM

Now here's a thought....government becomes the new homeless.

Let 'em work from under a bridge.

Title: Re: Stockton, Calif. May Be The Next City Driven To Bankruptcy
Post by: bijou on June 04, 2012, 07:02:34 AM

Quote from: JohnnyReb on June 04, 2012, 06:43:41 AM

Now here's a thought....government becomes the new homeless.

Let 'em work from under a bridge.

You know things may get better if they had to come and panhandle in person for their money, voters might have quite a bit to say to them.  :-)

Title: Re: Stockton, Calif. May Be The Next City Driven To Bankruptcy
Post by: RightCoast on June 04, 2012, 09:23:58 PM

All governments become money vacuums. They never learn how to stop, it's built into their suicide pact city charters and state/ federal budget rules...spend every dime whether you need it or not. Then borrow more money to spend. Then raise taxes. Then borrow more money - and they never, ever stop.

Title: Re: Stockton, Calif. May Be The Next City Driven To Bankruptcy
Post by: formerlurker on June 05, 2012, 02:48:56 AM

I never heard of such a thing.  Municipalites float bonds for capital purchases.  There is no collateral.

Very odd.

Title: Re: Stockton, Calif. May Be The Next City Driven To Bankruptcy
Post by: formerlurker on June 05, 2012, 02:53:49 AM

Quote from: RightCoast on June 04, 2012, 09:23:58 PM

All governments become money vacuums. They never learn how to stop, it's built into their suicide pact city charters and state/ federal budget rules...spend every dime whether you need it or not. Then borrow more money to spend. Then raise taxes. Then borrow more money - and they never, ever stop.

MA has a law called Proposition 2 1/2.   Real estate taxes cannot go up more than 2.5% every year without a ballot override vote.   

Municipalities are bleeding out because of health insurance premiums and pensions.  Reason why Wisconsin vote today is so damn important.

Title: Re: Stockton, Calif. May Be The Next City Driven To Bankruptcy
Post by: Wineslob on June 05, 2012, 09:49:43 AM

Stockton has always been a shit hole. No surprises here.