Stockton, California to file for bankruptcy protection

[red states rule]

The union goonsare not going to like this, and another example of how public secotr unions are literally bankrupting local governments





Stockton, California, said it will file for bankruptcy after talks with bondholders and labor unions failed, making the agricultural center the biggest U.S. city to seek court protection from creditors.

“The city is fiscally insolvent and must seek chapter 9 bankruptcy protection,” Stockton said in a statement released yesterday after its council voted 6-1 to adopt a spending plan for operating under bankruptcy protection. “In addition to the bankruptcy petition, the city will file a motion with the courts to share information from the confidential mediation.”

The budget for the fiscal year beginning July 1 calls for defaulting on $10.2 million in debt payments and cutting $11.2 million in employee pay and benefits under union contracts that could be voided by the bankruptcy court. The city of 292,000 may file its petition as soon as today.
“It’s a sad day in the city of Stockton,” Mayor Ann Johnston said before the budget vote. “I see no other solution to this.”

Municipal bankruptcies in the U.S., while still rare compared to corporate filings, became more common after the housing and financial crisis began. Ten of 42 cases filed since 1981 came in the past four years, according to court records.

The biggest municipal bankruptcy was filed last year by Jefferson County, Alabama, which is trying to restructure $4.2 billion in debt, most of which is tied to sewer bond deals tainted by corruption.

http://www.washingtonpost.com/business/stockton-california-to-file-for-bankruptcy-protection/2012/06/27/gJQAOoim6V_story.html

[aboutime]

The union goonsare not going to like this, and another example of how public secotr unions are literally bankrupting local governments

As Stockton Goes....So goes many of the other Major American cities, being run, and destroyed by Democrat Mayors, Governors, Senates, and Houses of State Representatives.

The WORD most Americans will learn to spell....better than Disenfranchisement will be...
BANKRUPTCY.

I don't usually make predictions but. Please make a mental note that you heard it here FIRST.

[mundame]

I've been reading "This Time Is Different," which is pretty good, number and graphs heavy, but they say that what Stockton did is the norm: all countries, cities, etc. build up huge debt in good times, rich times, prosperous times. This is the time they should be paying DOWN debt, saving up, gaining a surplus ---------- but ALL political bodies use good times to go hugely into debt.

Stockton bought Everything, A stadium, sewers, etc., etc., they spent like a drunken Dutch sailor, borrowed ALL the money.




Guess what happened when the economy went South?

Well, we see what happened.

And that is what ALL political bodies do: Greece, Spain, California, etc. Good times: borrow. Bad times: go totally broke.



Something doesn't make sense about this.........

[aboutime]

I've been reading "This Time Is Different," which is pretty good, number and graphs heavy, but they say that what Stockton did is the norm: all countries, cities, etc. build up huge debt in good times, rich times, prosperous times. This is the time they should be paying DOWN debt, saving up, gaining a surplus ---------- but ALL political bodies use good times to go hugely into debt.

Stockton bought Everything, A stadium, sewers, etc., etc., they spent like a drunken Dutch sailor, borrowed ALL the money.




Guess what happened when the economy went South?

Well, we see what happened.

And that is what ALL political bodies do: Greece, Spain, California, etc. Good times: borrow. Bad times: go totally broke.



Something doesn't make sense about this.........


Right you are. California has been raising taxes on businesses for so long now. Businesses, and Corporations are leaving the state in growing numbers. And in doing so. Reducing the expected Tax base that formerly supported the Drunken Sailor spending for Pensions the state CAN NO LONGER AFFORD.
Funny thing is. All of that wild spending began when Jerry Brown was gov. the first time. And now. The people who put him in office...have probably left the state as well. Leaving him to FEND for himself, in Huge debt, and a Shrinking Tax base...which equals Smaller Revenues.

It must suck to be jerry right now.

[red states rule]

and yet the voters in CA keep electing tax and spend libs who continue to run the state into the ground

If this is what they want then I hope they enjoy every humilating moment