Municipal Bankruptcies

[sjh]

The town I call home, at least for now, declared bankruptcy a few years back.

For Vallejo, Bankruptcy Isn’t Exactly a Fresh Start

Bankruptcy Exit Approved for City

Vallejo's bankruptcy officially over

The city is a mess. For a number of reasons. The economic disruption and housing collapse are part. The town had depended on the Mare Island - Naval Base and lived off of the government teat for many generations. When the Navy left and the city was required to 'roll up their sleeves' and get to work they decided instead to pout.

There are other factors. The homegrown terrorist group, the Black Panthers targeted Vallejo as their first city to proselytize so there is a history of racial division. Large numbers of poorly educated and lacking the 'protestant work-ethic' workers were brought in during WWII to work at the base and then reverted to their 'low maintenance' life-style after the war. And the whole notion of 'e pluribis unum', a melting pot, a common culture with shared values and language is deeply rejected by much of the SF Bay area.

But a huge factor, and common to all current municipalities that have or are considering bankruptcy is the staggering cost of 'public-service' employees (Orwell must be rolling over in his grave over that travesty of language).

A recent publication listed the numerous $200K, $250K, $300K and $350K salaries of police, firemen, and city officials. Just for perspective, the surgeon (16+ years in college, IQ > 130) who operated on me and saved my life is probably making around $225K. On top of the egregious salaries are benefit and retirement packages that are 'beyond the pale.'

This has created a situation were the 'public servants' view the populous as as carcass on which to enjoy their parasitic feast. It means that when you call the police for a crime in progress that they do not respond and then lie and state that they came out and no one was there. Or if you ask a question of an officer, "Is this a legal parking spot?", "Would you like me to pull over?", the response is one of anger and derision.

There have been 4 hit-and-run accidents in front of my house in the past 2 years. This is 2 blocks from a school and three blocks from two hospitals. To the best of my knowledge three out of four times the police did not even come out and the one time they did they only went through the motions.

I share this because it is what is in store for many communities in the next 5 years unless there is a substantial change (which I doubt that there will be).

It seems pretty clear that the entire state of California is headed for a similar situation.

So be advised, soon, there will be an effort underway, certainly during Obama's second term if there is one, to arrange a massive federal bail-out of the state. I'd say thank you but I am so opposed to this that I would prefer you did not help.

Of course the 'public servants' who are the true recipients will not thank you so I probably should do so on their behalf.

You may start early and mail your checks to

We'll Take Your Cash
c/o
State of California
Sacramento, CA

....

[benhogan]

Brace yourself for more municipal bankruptcies. Even the bonds with municipal bond insurance are in danger because a lot of the insurers themselves are insolvent.

Welcome to the new normal.

[sjh]

Originally Posted by benhogan

Brace yourself for more municipal bankruptcies. Even the bonds with municipal bond insurance are in danger because a lot of the insurers themselves are insolvent.

Welcome to the new normal.

No kidding.

Rhode Island just past this law.

A new Rhode Island law that guarantees municipal bondholders will be paid back even if the cities and towns in which they invest go bankrupt could spur a nationwide trend -- if courts allow it to stand.

...

[Hatterasguy]

Come to CT, my state is doing just dandy, we have a balanced budget now.

Bridgeport might go under but that's not unusual for them so it doesn't really affect anyone.

[Dee8go]

Government entities of all sizes are proving that they are unable to handle the money we give them. I am surprised there is not a greater mandate to reduce government reach, scope, and size. It is talked about fairly often, but nothing much seems to come of it.

[aklim]

Originally Posted by Dee8go

Government entities of all sizes are proving that they are unable to handle the money we give them. I am surprised there is not a greater mandate to reduce government reach, scope, and size. It is talked about fairly often, but nothing much seems to come of it.

People are too addicted to the freebies and goodies that a govt gives them to vote against it.

[sjh]

More municipalities declaring bankruptcies.

Central Falls, RI

Jefferson County, AL

And a commentary/analysis by the International Business Times on the inevitable and soon to come next economic collapse.

Next Economic Crisis Will Be Much Worse

.