STOCKTON, Calif headed for bankruptcy

Nova78

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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 .
 
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
The California city of San Bernardino has filed for bankruptcy protection amid a $46m (£30m) budget deficit and ongoing criminal investigations. The city listed assets and debts of over $1bn, court documents show, and becomes the third in the state to go bust in just over one month. Mayor Patrick Morris said San Bernardino filed for Chapter 9 to avoid legal action from creditors. In June, Stockton filed for bankruptcy, followed by Mammoth Lakes in July. The city council of San Bernardino approved the decision to file for bankruptcy protection last month.

'Remarkably sobering'

The city's mayor confirmed the bankruptcy and told local media of his feelings at being tasked with filing the papers. "It's remarkably sobering to walk in that door, and to put that in the clerk's hand is a moment that gives one great pause," Patrick Morris told the Inland Valley Daily Bulletin. But he defended the move to file for bankruptcy protection, saying: "It was simply a filing for the purpose of avoiding any possible seizure by litigants of our liquid assets." Meanwhile, Acting Assistant City Manager Gwendolyn Waters said the legal procedures should not have an immediate impact on the city of about 210,000 people.

Ms Waters said there were no current plans to scale back public services, but added that a proposal of budget cuts would be laid out within three weeks and those plans could include cuts. The city has already reduced its workforce by 20% over the last four years, Bloomberg reported. Analysts say the development is indicative of the deep blow dealt to US states by the financial crisis. San Bernardino, located 60 miles (96km) east of Los Angeles, was pummelled by a foreclosure crisis spawned by the housing crash, a now-familiar story.

As well as having an estimated 5,000 homes repossessed, San Bernardino is struggling with an unemployment rate close to 16%, almost double the national average. Stockton - a city of nearly 300,000 in California's Central Valley - filed last month for bankruptcy amid a $26m budget gap. It was followed by Mammoth Lakes, a ski resort of about 8,000 residents, which was saddled with a $43m legal judgment. Before Stockton, a Californian city had not filed for bankruptcy since Vallejo in 2008.

BBC News - San Bernardino in California files for bankruptcy
 
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 .

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.
 
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.
Data that the Census Bureau developed on what it calls the “social characteristics” of Stockton during the five-year period from 2007 to 2011, indicate that this city, located eighty miles east of San Francisco in California’s San Joaquin Valley, had a population of 289,926. Of those 289,926 people, 76,869 (or about 27 percent) were foreign born, according to the Census Bureau. Of these foreign-born, 43,084 (or about 15 percent of this city’s total population) were not U.S. citizens. Looking at the subset of Stockton's population that was five years old or older (264,713), the Census Bureau estimated there were 119,991 people who did not speak English at home. These 119,991 people equaled about 41 percent of Stockton’s overall population of 289,926 people and about 45 percent of the 264,713 people in the city who were five years old or older.

The Census Bureau also estimated that there were 59,577 people over the age of five in Stockton who “speak English less than ‘very well.’” These 59,577 people in Stockton who had not mastered English equaled about 21 percent of the city’s total population and about 23 percent of its residents who were five years or older. The Census Bureau estimated that there were 76,869 people in Stockton who were foreign born. This included 33,785 naturalized U.S. citizens and 43,084 people who were not U.S. citizens. That means the foreign-born population of Stockton (76,869) equaled about 27 percent of the city’s total population and the 43,084 non-naturalized foreign nationals equaled about 15 percent of the city's total population.

According to the Census Bureau, the two regions of the world contributing the largest number of foreign-born residents to Stockton were Latin America and Asia. 37,886 people in Stockton (13 percent of the total population) were born in Latin America and 35,820 (12 percent of the total population) were born in Asia. While the Census Bureau data does distinguish between foreign-born residents who have been naturalized and those who have not been naturalized, it does not distinguish between non-naturalized foreign nationals who are in the United States legally and those who were not.

Source
 
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.
 
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.

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??????????
 
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.

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??????????

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.
 
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.

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??????????

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.

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

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.
 
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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.

clearing a lot of debt produces winners and losers. The taxpayers who win may also be the pensioners and city residents who lose??

Do you have any idea what you are talking about??
 
;
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.

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.

Great points. Great question. Whoever puts that puzzle together CONVINCINGLY is going to live well.

Overall lending being below volumes classic indicators indicate is - in my opinion - the result of chronic fear. Every bank that sold a dubious mortgage is at risk of clawbacks if bad faith or fraud are discovered. What do you believe are prospects of that if most banks ever experience an honest audit?

IMO, among the bigs, it isn't likely 25% capital to loan value - let alone 25% capital to asset value - would equal 2% of nominal value of speculative-grade derivatives held. Plus some of the "capital" isn't cash, and so is suspect.

C&I lending is up - again in my opinion - because four to five years of wear and tear is being addressed by businesses with strong sales books. My current employer is a Fortune 100 behemoth; the sole reason they sent for me was to remediate years of neglect in a factory being set up for 2018-2020. We're doing it live; the plan being to go from 150 souls to 900 adding whatever head count makes sense and moving jobs back from China.



This is years from over.
 
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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??????????

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.

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

Does this mean that EdB is going to start using links to back up his confusing posting style? That'd be great! Finally, people might get a clue about what the hell he's trying to say. Come on folks, EdB is like a small child who's just learning how to talk.
 
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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.

clearing a lot of debt produces winners and losers. The taxpayers who win may also be the pensioners and city residents who lose??

Do you have any idea what you are talking about??

No, Edmund. The clearly superior mind of the nutball keeps me in constant doubt, including about bad breath and so on.

But let me take a flier here on winners and losers, okay?

So what?
 
This is years from over.

I think this is close to being over, or at least this iteration of the Neverending Financial Crises and the Asset Driven Economy that we've become. Perhaps there's another one coming with ZIRP and/or entitlements at the end of the decade.

This is a classic balance sheet recession. Reinhardt and Rogoff are excellent detailing the anatomy of a balance sheet recession. And it's pretty much going according to script. Before we can normalize growth, we have to clear out the excess inventory that led to the collapse and all the bad debt. A few years ago, we sat down and calculated the rate of household formation, home starts and shadow inventory, and came to the conclusion that the housing market nationally would be in equilibrium around 2014, give or take a year. It appears that it is coming into balance now, which means growth should normalize and probably accelerate into 2014-15. There is a $1 trillion wall of commercial RE loans coming due by 2016 that could become a problem, but given how easily we were able to refinance all the senior loans and high yield debt, it shouldn't be much of a problem.
 
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.

clearing a lot of debt produces winners and losers. The taxpayers who win may also be the pensioners and city residents who lose??

Do you have any idea what you are talking about??

No, Edmund. The clearly superior mind of the nutball keeps me in constant doubt, including about bad breath and so on.

But let me take a flier here on winners and losers, okay?

So what?

dear, you said a chain of bankruptcies like Stockton would be beneficial and I said, in effect, why. Can you tell us why or must you admit as a liberal you lack the IQ to do so?
 
This is years from over.

I think this is close to being over, or at least this iteration of the Neverending Financial Crises and the Asset Driven Economy that we've become. Perhaps there's another one coming with ZIRP and/or entitlements at the end of the decade.

This is a classic balance sheet recession. Reinhardt and Rogoff are excellent detailing the anatomy of a balance sheet recession. And it's pretty much going according to script. Before we can normalize growth, we have to clear out the excess inventory that led to the collapse and all the bad debt. A few years ago, we sat down and calculated the rate of household formation, home starts and shadow inventory, and came to the conclusion that the housing market nationally would be in equilibrium around 2014, give or take a year. It appears that it is coming into balance now, which means growth should normalize and probably accelerate into 2014-15. There is a $1 trillion wall of commercial RE loans coming due by 2016 that could become a problem, but given how easily we were able to refinance all the senior loans and high yield debt, it shouldn't be much of a problem.

While the popular wisdom is "balance sheet recession" that seems way too simple. Outright quasi-legal fraud (see, breach of fiduciary accountability) in low margin/no margin cdos/other derivatives is probably more than US$200kkkk of the $569kkkk known in Sept 2008. A ton of that is still on the books. No one knows what is what or where.

My guess is as long as financial black holes can be rolled over and pushed out the government will help crooks and scum do it because of the massive state/local government and pension fund risks still out there.


All I know for sure is

1. recent individual/family spending by folks earning below the mean is replacing wear and tear on whatever; it is NOT trips to Disneyland and that sort of thing.

2. that a number of the most successful manufacturing corporations on earth see normalized employment and spending outside the parasite classes depending on finance and government returning in 2018 or 2020.

3. I'd bet my life against a fairly small amount of money (Wall Street 'small') that we'll see another serious "correction" and spike in unemployment before then.
 
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While the popular wisdom is "balance sheet recession" that seems way too simple. Outright quasi-legal fraud (see, breach of fiduciary accountability) in low margin/no margin cdos/other derivatives is probably more than US$200kkkk of the $569kkkk known in Sept 2008. A ton of that is still on the books. No one knows what is what or where.

It's true there was significant fraud, but fraud is more of a fuel than a fundamental cause. If you study asset bubbles, you find that they all have similar characteristics. Fraud usually occurs near the end of a frenzy, as credit standards and due diligence practices decline, sometimes remarkably. But, for many reasons, fraud wasn't the underlying driver of the bubble.
 
While the popular wisdom is "balance sheet recession" that seems way too simple. Outright quasi-legal fraud (see, breach of fiduciary accountability) in low margin/no margin cdos/other derivatives is probably more than US$200kkkk of the $569kkkk known in Sept 2008. A ton of that is still on the books. No one knows what is what or where.

It's true there was significant fraud, but fraud is more of a fuel than a fundamental cause. If you study asset bubbles, you find that they all have similar characteristics. Fraud usually occurs near the end of a frenzy, as credit standards and due diligence practices decline, sometimes remarkably. But, for many reasons, fraud wasn't the underlying driver of the bubble.

So true, a bubble like the housing bubble is 100% imposssible without the liberal government printing the money needed to inflated the bubble.

The truth openly conflicts with the Marxist bankster agenda so the liberal as slither away with his tail between his legs.
 

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