California needs to declare bankruptcy!

Discussion in 'Economy' started by Neubarth, Jul 7, 2009.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    California needs to declare bankruptcy!


    It is absolutely essential to get out from under all the debt that now is rated close to junk status.

    They also need to get out from all those contracts. A bankruptcy that erases all contracts would allow California to go forward paying all workers 10 dollar an hour for the time being (That includes the Governator.) All pensions would be capped at 24,000 dollars max per year.

    I am the first person calling for it, but eventually others will admit that bankruptcy and restructure of all contracts and debt is the only way. This state just got carried away with all the liberal spending. There are people getting $100,000 pensions and that is morally wrong. We have got to downsize expense to go with the present deflation sweeping the land.
     
  2. tigerbob
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    tigerbob Increasingly jaded.

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    When has anything sensible ever come out of California?
     
  3. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    Your house, your call, brother.

    Get 'er done.

    -Joe
     
  4. Neubarth
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    Neubarth At the Ballpark July 30th

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    Once California does it, twenty other states will follow in quick succession. California is so heavily in debt with all of the liberal spending programs that there is no way that tax revenue can ever accomodate the ever increasing payments.

    They have got to pull the plug, Declare bankruptcy, rewrite the state constitution to accomodate the provisions of law that would be necessary. It can be done and must be done.

    Maybe California can lead the way and show the others how it must be done. Maybe California can do something sensible for the first time in years.
     
  5. tigerbob
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    tigerbob Increasingly jaded.

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    I won't hold my breath, but that would be cool.
     
  6. wimpy77
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    wimpy77 Member

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    a state has no authorization under the united states bankruptcy code. i saw on foxnews the other night they had a judge and he said that legally a state could not file for bankruptcy that all they could do is default. chapter 9 only allows municipals to file for bankruptcy such as cities, counties and etc. but states in of themselves cannot. they are going to have work it out.
     
    Last edited: Jul 7, 2009
  7. auditor0007
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    auditor0007 Gold Member

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    Maybe they should just raise taxes a little more. It's always worked in the past. The reason they won't is because all those Democrat legislators know that the backlash would put them out of a job.
     
  8. Neubarth
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    Neubarth At the Ballpark July 30th

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    The section of the bankruptcy code that Obama just used to cut GM down to one third its former size can be used by the state of California. California is an institution and as such can declare bankruptcy. The Federal government just has to decide to accept the bankruptcy.
     
  9. wimpy77
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    wimpy77 Member

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    it would be easier for them to just give them $25 billion dollars (im against that just to put that out there). the best thing for california and other states is stop playing politics and do what needs to be done. the longer they drag this political BS the worse its gonna be. taxes are gonna have be raised and cuts to programs are gonna have to be made.
     
    Last edited: Jul 8, 2009
  10. Baruch Menachem
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    Baruch Menachem '

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    Oregon has the same pension issue, plus a bit.

    Oregon's problem with the pensions is written into the Oregon constitution. Would a federal judge have the authority to re write Oregon's constitution to deal with the issue?

    Would a federal judge have the authority to re write California's constitution on the same basis?

    Would a federal judge have the right to sell off the government owned enterprises like the water projects?

    Just going broke isn't going to do much if California just goes broke on a regular basis. Oregon and California need structural reform that I just don't see happening any time soon.
     

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