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San Bernardino, California, Weighs Chapter 9 Bankruptcy; That Seals the Fate


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2012 Jul 10, 1:05pm   2,111 views  4 comments

by Mish   ➕follow (3)   💰tip   ignore  

San Bernardino, California, Weighs Chapter 9 Bankruptcy; That Seals the Fate
http://globaleconomicanalysis.blogspot.com/2012/07/more-excellent-news-san-bernardino.html
Mish

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1   bmwman91   2012 Jul 10, 2:53pm  

It worked out (relatively) well for Vallejo, all things considered. I suspect that it will be the best thing that has happened in Stockton in a long, long time. San Bernardino is on the right track too, it seems.

2   Ceffer   2012 Jul 10, 5:46pm  

In California, so many of these towns and municipalities were created less for governance than as a springboard for influential locals overseeing development. City planners were in bed with the developers and everybody getting rich.

When development started tapping out, then the municipalities were sources of exorbitant pay and benefits from the tax base, with whatever sweetheart deals left being doled out behind closed doors, usually in the late night time after the public hearings were over.

Bankruptcy, consolidation, and outsourcing of services is the probable wave of the future with fewer towns and cities, they just won't be able to come up with the money to keep their monsters alive.

Of course, then California will have to figure out a way to go bankrupt as well eventually.

3   don   2012 Jul 10, 6:27pm  

I think it's time for another war. Syria, then Iran. Followed by Venezuela and Cuba. Oh yeah, let's keep the tax cuts on the rich in place too. Oh, and let's have more "free-trade" agreements with countries that have $1 a day wages and no environmental protections so that we can buy their crap for cheap. While our own industrial base disappears for some strange reason.

Is it that hard to see why the nation in in a financial mess?

The victims of bankruptcies like this one will be government employees and retirees. Just the folks that the right-wingers like Mish love to hate.

4   lostand confused   2012 Jul 10, 7:54pm  

Plenty of corporations go into bankruptcy, wipe out billions and billions in debt and then come out leaner. Some go into bankruptcy again and again. AMR is in bankruptcy for what-the gazillionth time?

Why should a city be any different.

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