Special Report: How a vicious circle of self-interest sank a California city

Discussion in 'Politics' started by daveman, Nov 18, 2012.

  1. daveman
    Offline

    daveman Diamond Member

    Joined:
    Jun 25, 2010
    Messages:
    51,299
    Thanks Received:
    5,693
    Trophy Points:
    1,775
    Location:
    On the way to the Dark Tower.
    Ratings:
    +5,759
    Special Report: How a vicious circle of self-interest sank a California city
    (Reuters) - When this sun-drenched exurb east of Los Angeles filed for bankruptcy protection in August, the city attorney suggested fraudulent accounting was the root of the problem.

    The mayor blamed a dysfunctional city council and greedy police and fire unions. The unions blamed the mayor. Even now, there is little agreement on how the city got into this crisis or how it can extricate itself.

    "It's total political chaos," said John Husing, a former San Bernardino resident and regional economist. "There is no solution. They'll never fix anything."

    Yet on close examination, the city's decades-long journey from prosperous, middle-class community to bankrupt, crime-ridden, foreclosure-blighted basket case is straightforward — and alarmingly similar to the path traveled by many municipalities around America's largest state. San Bernardino succumbed to a vicious circle of self-interests among city workers, local politicians and state pension overseers.

    Little by little, over many years, the salaries and retirement benefits of San Bernardino's city workers — and especially its police and firemen — grew richer and richer, even as the city lost its major employers and gradually got poorer and poorer.

    Unions poured money into city council elections, and the city council poured money into union pay and pensions. The California Public Employees' Retirement System (Calpers), which manages pension plans for San Bernardino and many other cities, encouraged ever-sweeter benefits. Investment bankers sold clever bond deals to pay for them. Meanwhile, state law made it impossible to raise local property taxes and difficult to boost any other kind.

    No single deal or decision involving benefits and wages over the years killed the city. But cumulatively, they built a pension-fueled financial time-bomb that finally exploded.​

    Long read, but it highlights the problems ramping up in CA.
     
    • Thank You! Thank You! x 1
  2. Katzndogz
    Offline

    Katzndogz Diamond Member

    Joined:
    Sep 27, 2011
    Messages:
    65,659
    Thanks Received:
    7,418
    Trophy Points:
    1,830
    Ratings:
    +8,337
    The police were more honest when they just showed up at your door demanding the monthly contribution to the widows and orphans fund.
     
  3. rdean
    Offline

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,152
    Thanks Received:
    6,900
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +15,006
    So many concerned with Blue States. Why not Red States where so much of the poverty, and lack of education and and lack of business are?
     
  4. daveman
    Offline

    daveman Diamond Member

    Joined:
    Jun 25, 2010
    Messages:
    51,299
    Thanks Received:
    5,693
    Trophy Points:
    1,775
    Location:
    On the way to the Dark Tower.
    Ratings:
    +5,759
    If you guys could operate your own states competently, then you might have standing to criticize other states.
     
  5. bripat9643
    Offline

    bripat9643 Diamond Member

    Joined:
    Apr 1, 2011
    Messages:
    67,887
    Thanks Received:
    8,092
    Trophy Points:
    2,030
    Ratings:
    +27,418
    What do you propose, more welfare? Aren't turds like you always whining about paying welfare to red states?
     
  6. GoneBezerk
    Offline

    GoneBezerk BANNED

    Joined:
    May 14, 2011
    Messages:
    7,603
    Thanks Received:
    492
    Trophy Points:
    0
    Ratings:
    +495
    I see a pattern here.....unions are always involved in some problem with a city, company, etc.....
     
  7. Mad Scientist
    Offline

    Mad Scientist Deplorable Gold Supporting Member Supporting Member

    Joined:
    Sep 15, 2008
    Messages:
    23,940
    Thanks Received:
    5,212
    Trophy Points:
    270
    Ratings:
    +7,683
    Maybe because people like me own Homes in Blue States like California but don't want them stolen via high property taxes?

    Just a thought.
     
    • Thank You! Thank You! x 1
  8. GoneBezerk
    Offline

    GoneBezerk BANNED

    Joined:
    May 14, 2011
    Messages:
    7,603
    Thanks Received:
    492
    Trophy Points:
    0
    Ratings:
    +495
    Asswipe....businesses are leaving Illinois like the place has the plague. They are running to red states like SC, TX, TN, etc because those states aren't shaking them down for money.

    Red states understand companies want to hire people and make profits, whereas blue states see companies as some leaches on society that need to pay for people living in the ghetto. Ghetto scum like you in Chicago.

     
  9. Mad Scientist
    Offline

    Mad Scientist Deplorable Gold Supporting Member Supporting Member

    Joined:
    Sep 15, 2008
    Messages:
    23,940
    Thanks Received:
    5,212
    Trophy Points:
    270
    Ratings:
    +7,683
    Interesting interview with Teri Buhl on The Keiser Report (which everyone should watch all the time) about San Bernardino's self inflicted financial problems. FFWD to 12:55:

    [ame=http://www.youtube.com/watch?v=lb5b3Sf26L0]Keiser Report: Virtual Virtual Economy (E321) - YouTube[/ame]
     
  10. Rozman
    Offline

    Rozman Gold Member Supporting Member

    Joined:
    Sep 18, 2009
    Messages:
    16,576
    Thanks Received:
    3,060
    Trophy Points:
    290
    Location:
    Brooklyn,NY
    Ratings:
    +6,688
    I'm guessing here that the chances of getting MSNBC to report on this story
    will be the same as us getting the real story on what happened in Benghazi...
     

Share This Page