Stockton, Calif. May Be The Next City Driven To Bankruptcy

[bijou]

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

[JohnnyReb]

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

Let 'em work from under a bridge.

[bijou]

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. 

[RightCoast]

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.

[formerlurker]

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

Very odd.

[formerlurker]

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.

[Wineslob]

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