STOCKTON, Calif headed for bankruptcy

Discussion in 'Economy' started by Nova78, Jun 26, 2012.

  1. Nova78
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    Nova78 Silver Member

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    Mayor: Stockton appears headed for bankruptcy | US National Headlines | Comcast

    STOCKTON, Calif. — Stockton could become the largest U.S. city to declare bankruptcy after a deadline to make a deal with its creditors passed and the city's mayor said Tuesday she did not believe a settlement had been reached.

    Mayor Ann Johnston said that a formal bankruptcy filing appears "very likely."

    In the past three years, officials in the city that was slammed by the collapse of the housing market dealt with $90 million in deficits through a series of drastic cuts.

    They eliminated one-fourth of the city's police officers, one-third of the fire staff, and 40 percent of all other employees. They also cut wages and medical benefits.

    To plug next year's anticipated $26 million budget shortfall, a proposed budget to be considered Tuesday night would suspend payments for debts and legal claims; reduce payments for retiree medical benefits; further cut some pay and benefits; and increase revenue through code enforcement and parking citations.

    All the stupid fucks can come up with is to stick it to the people that live there .
     
  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Another California city goin' bankrupt...
    :eusa_shifty:
    San Bernardino in California files for bankruptcy
    1 August 2012 - Unemployment in San Bernardino is almost double the national average
     
  3. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    yes there is a new reality: you have to live within your means!!! A liberal will lack the IQ to know that there is no free lunch.
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says dey should learn how to speak English so's dey'd know how to run the city...
    :redface:
    41% in Bankrupt Stockton Don’t Speak English at Home; 21% Can’t Speak It Very Well
    April 3, 2013 - In Stockton, Calif., which has just entered into Chapter 9 bankruptcy, 41 percent of the people do not speak English at home and 21 percent cannot speak it very well, according to the U.S. Census Bureau.
     
  5. Dugdale_Jukes
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    Dugdale_Jukes Senior Member

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    One hopes they do file and it starts an avalanche of house cleaning public sector bankruptcies the last two filthy fuckers in the white house tried moving heaven and earth onto the backs of middle class taxpayers to prevent.
     
  6. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    how can you persuade anybody of anything with gibberish rants?
    can you give your best example of what you are talking about or in the end do you lack the IQ to do so?

    we can go to bums in Central Parks if we want gibberish rants. How can you not know that??????????
     
  7. Dugdale_Jukes
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    Dugdale_Jukes Senior Member

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    You are a howl, Edmund.

    There aren't a dozen people on earth whose first language is English who can read the two posts above and reach the wrong conclusion about either our relative IQs or which one reads like gibberish from a homeless hustler in Central Park.
     
  8. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    can you give your best example of what you are talking about or in the end do you lack the IQ to do so?
     
  9. Dugdale_Jukes
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    Dugdale_Jukes Senior Member

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    Forgive me, Edmund. My habitual state is shock and awe at the mental prowess of the conservative. It hardly seemed necessary to amplify such pedestrian points. However, since you ask...

    1. Bankruptcies come in two forms: clean slate and structured pay back of all or part of debts. Local governments that file and ARE NOT subsequently bailed out by their state governments will likely end up in a Chapter 11 type of bankruptcy where part of their debts are paid.

    2. Both Bush and Obama prevented trillions of dollars in NOMINAL VALUE derivatives from being wiped off the books with trillion dollar bailouts paying 100cents on the dollar for management at AIG and Goldman Sachs, among others.

    3. While some claim the money is being paid back, QE assures cheaper dollars come back than went out. Worse, more than half the worthless derivatives of 2008 are still out there ticking - and THAT is the reason banks aren't in a big rush to lend and borrowers aren't in a big rush to borrow. Worse than that, THAT is the reason business is reluctant to invest much in capital expenditures at this time or take on more permanent labor.

    4. If Stockton goes into bankruptcy, it could start a beneficial chain of bankruptcies clearing a lot of debt off taxpayers and encouraging other jurisdictions to do the same.

    Hopefully the stunted mind of the anti-partisan has communicated at the level the superior mind of the conservative can grasp.
    Got to go here shortly, Edmund. As always, it's been real.
     
  10. Toro
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    Toro Diamond Member

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    I can understand why those banks with still significant derivatives exposures would be reluctant to lend - the half dozen or so who were really caught - but why would businesses be reluctant to lend because of mortgage derivatives held at banks? Why would, say, a chemical company considering building a cracker or a semi company a fab care about the synthetic CDO exposure of Citigroup? I get the math that if the government is adding debt and households de-leveraging, then business savings will soar, but I'm not sure why there is a linkage between corporate lending and the composition of banks' balance sheets.

    Also, C&I loans are growing. Banks are lending. ZIRP has driven deposit rates to zero, which were then reinvested by banks into agency-backed RMBS. This allowed banks to re-build their capital bases and tier 1 capital is now at 12% in aggregate, the highest level in decades. A couple of years ago, lending was frozen as banks were afraid to dispose of their assets, lest they be marked-to-market and deemed bust by their regulators. However, banks now have enough of a capital cushion to sell their impaired loans and take the hit to equity, which is freeing up capital to lend.
     
    Last edited: Apr 3, 2013

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