So, How many Cities and States will declare bankruptcy in the next 6 months?

[Neubarth]

Now that I have your attention, I will just make it Cities and Counties as opposed to States. There is a debate about the legality of a state declaring BK.

So, how many Cities and Counties will declare bankruptcy int he coming six months? Anybody want to take a guess? I say at least twenty. All it will take is one city declaring and BK and that could happen most any day. San Diego and Los Angeles are perfect candidates. Neither wants to be the first, so they are stalling for time.

In 2008, Vallejo, Calif declared BK. Years earlier Orange County declared BK. It has been done in the past and will be done with great frequency in the near future.

 

[Neubarth]

ohhhhh….filing bankruptcy may be the unconditional most horrible thing that borrowers can do to get better their financial position. however, much as the debt protection of bankruptcy may have seemed a bonus for the generations that came before, there are now any number of new bankruptcy alternatives available for those debtors who have faced financial misfortune….

Indeed, for Cities like Los Angeles and Counties like Orange, CA, it is called Chapter Nine.

Coming to you soon in your neighborhood!

 

[georgephillip]

No doubt many neighborhoods will be filing for some form of BK protection, but I wonder if any of them will be from the state of North Dakota?

If there's a silver lining to be found in this horrible mess, maybe it's the chance to drive a stake through the heart(?) of Wall Street.

Public or Private Banks...not much doubt which side politicians prefer, and one of the main reasons Goldman Sachs donated over $900,000 to Hope and Change in 2008.