Stockton, Calif., *BOOM* bankruptcy [General]

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User Info	Stockton, Calif., BOOM bankruptcy in forum [General]
Crossthread Posts: 4550 Incept: 2007-09-04 Wilmington, NC	>snip< officials say this river port city of 290,000 is on the brink of insolvency and could become the nation's largest city to fall into Chapter 9 bankruptcy protection.>snip< Quote: "If they vote for mediation, it is the first step towards bankruptcy," former City Manager Dwane Milnes said. "That means 1,000 people could lose retirement benefits." Quote: The plan is that, city will skip some bond payments in an effort to restructure its precarious finances. Along with defaulting on about $2 million of debt payments through the end of its current fiscal year, the city located about 85 miles east of San Francisco will seek mediation with its major bond holders to try to get a break on its debt to help tackle a budget gap projected to range from $20 million to $38 million. >snip<City leaders say Stockton could soon be unable to pay its debts. The city has a $15 million deficit — $6.6 million from the last fiscal year and $8.7 million expected for the current fiscal year, according to documents. Forecasts also show deficits ranging from $20 million to $38 million for the fiscal year 2012-2013 and increasing in subsequent years. >snip< Money Quote: Quote: Stockton's finances have also been hurt by two decades of poor management, generous retirement benefits for city workers, unsustainable labor contracts and too much debt, said City Manager Bob Deis, who last week made public the default and mediation plan. >snip<Moody's Investors Service on Friday lowered Stockton, California's general fund-supported debt ratings to below investment grade, a move affecting about $341 million in debt, and Standard & Poor's Ratings Services cut its issuer credit rating on the city to speculative grade.>snip< read more @--> http://bottomline.msnbc.msn.com/_news/20.... ---------- “Cognitive Co-Dependency” is when a normal rational person, internalizes irrational illogical presentations, and somehow reconciles them to fit their scripted indoctrination of logical analysis. Quote: Samuel L. Clemens:There is NO Native Criminal Class; EXCEPT for CONgress 2012-02-29 09:07:56 Permalink
Resistance Posts: 6162 Incept: 2008-09-26 Banned	I'm shocked! Shocked I tell you! Who could've ever seen this coming? ---------- "Why must political experiments always be in the direction of more government? Why not give the free market a county or even a state or two, and see what it can accomplish?"Murray Rothbard - The Fallacy of the Public Sector 2012-02-29 09:25:26 From PDA Permalink
Flaps10 Posts: 5159 Incept: 2008-10-17 seattle	Quote: The city has a $15 million deficit — $6.6 million from the last fiscal year and $8.7 million expected for the current fiscal year, according to documents. Forecasts also show deficits ranging from $20 million to $38 million for the fiscal year 2012-2013 and increasing in subsequent years. There aren't enough fingers to plug the holes in the dyke. ---------- "Better to die on your feet than live on your knees" 2012-02-29 11:56:36 Permalink
Risingcream Posts: 4406 Incept: 2007-09-07	The only reason to stop in Stockon for is for their In-n-out burger off the freeway. ---------- Civilization...ancient and wicked. --Subotai “The distance between insanity and genius is measured only by success” 2012-02-29 12:00:11 Permalink
Flaps10 Posts: 5159 Incept: 2008-10-17 seattle	I ripped on by last year in my Miata. I had no intention of stopping before the border ---------- "Better to die on your feet than live on your knees" 2012-02-29 12:15:05 Permalink
Krzelune Posts: 5513 Incept: 2007-10-08	Don't stop at that in-n-out burger. It's not worth it. Go on to Elk Grove, Tracy or Manteca. ---------- The desire of millions, the inconvenience of millions, the suffering of millions, the death of millions, does not concern them because of the evolutionary humanist lens they peer through. 2012-02-29 18:47:16 Permalink
Christiangustafson Posts: 4140 Incept: 2007-06-27 Helping Hand Acceptance Corporation Banned	Quote: "That means 1,000 people could lose retirement benefits." ---------- It is therefore, on opinion only that government is founded... -- Hume 2012-02-29 21:39:41 Permalink
Newcub14 Posts: 422 Incept: 2007-08-26	This is the money-quote if you ask me: "According to Standard & Poor's, the police department made up $84.9 million, or 52%, of preliminary 2012 general fund budget expenses, while the fire department made up $39.8 million, or 30%. " http://online.wsj.com/article/SB10001424.... 82% of the ENTIRE general fund for police and fire 2012-02-29 23:38:25 Permalink
Creditcalmass Posts: 1636 Incept: 2008-06-04 New Englands Rising Star	Mostly on retiree benefits too I bet, guess how a bankruptcy court will deal with those? Hint: Central Falls, RI. ---------- "True strength lies in gentleness" 2012-02-29 23:42:44 Permalink
Rrasmuss Posts: 914 Incept: 2007-12-22 HHH WA	And this from a place that invented tracked vehicles. (Farming in the delta was a damp affair). ---------- I'm moving to California Cogito Cogito, ergo Cogito sum, Cogito 2012-03-01 00:17:18 From PDA Permalink
Mo Posts: 12158 Incept: 2007-06-26 Pa.	Stockton just needs more illegals to feed off the system. ---------- Welcome to Pottersville 2012-03-01 00:39:05 Permalink
Vitchilo Posts: 4602 Incept: 2011-04-27 Online	Well it's confirmed... http://hosted.ap.org/dynamic/stories/U/U.... Quote: Stockton official: Mediation with creditors fails Officials in Stockton said Tuesday that mediation with creditors has failed, meaning the Central California city is set to become the largest American city ever to declare bankruptcy. Bullish. ---------- "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." -- H.L. Mencken 2012-06-26 23:40:47 Permalink
Supercleanfund Posts: 1469 Incept: 2007-11-12 The Island City, CA	OH CRAP!! ---------- - * - * - * - * - * - Never underestimate the power of wishful thinking. 2012-06-27 00:01:47 Permalink
Marketpirate Posts: 1636 Incept: 2007-11-30 New York	Fun times ahead ---------- The bull**** stops when the money runs out, and not a moment before. 2012-06-27 00:35:16 Permalink
Resistance Posts: 6162 Incept: 2008-09-26 Banned	green shoots! ---------- "Why must political experiments always be in the direction of more government? Why not give the free market a county or even a state or two, and see what it can accomplish?"Murray Rothbard - The Fallacy of the Public Sector 2012-06-27 00:38:48 Permalink
Enapa Posts: 1163 Incept: 2008-01-25	They are just making official the position that basically every city and state is in. Hell the whole country is in the same position. Just havent made it all official like. Lol. 2012-06-27 00:43:28 From PDA Permalink
Noodleman Posts: 2391 Incept: 2008-11-01	Meredith Whitney was right. Her timing was off by a little but the forecast will continue to play out. Isn't Detroit on the brink too? Once the second wave hits after the EU blows up the cities will begin to form a long line behind Stockton for protection against creditors. Stockton was smart to be the first big city to request relief. It might even get them a partial bailout from Big Sugar. ---------- "Ammunition beats persuasion when you are looking for freedom." Will Rogers, 4 Nov 1879 - 15 Aug 1935 2012-06-27 00:45:34 Permalink
Creditcalmass Posts: 1636 Incept: 2008-06-04 New Englands Rising Star	Detroit is also on the brink as well, though the state of michigan will fight like hell to prevent it from filing...seeing as the state is ultimately on the hook for a bunch of detroit school related debt. ---------- "True strength lies in gentleness" 2012-06-27 08:11:54 Permalink
Degaston Posts: 2264 Incept: 2007-07-27	Meredith Whitney has a habit of being right but early. Personally I don't think all of the munis are going to blow up and I do think this will be spread out over years. Who's getting hurt first are the areas where taxes were already high, pension benefits extra-lucrative, and most importantly of all in the blighted suburbs who fail on the "location, location, location" test of real estate in both key areas (one, they're NOT in the metro center but in the traffic/congestion nosebleed sections; two, so many of their neighborhoods are like the blighted neighborhoods that caused people to flee to the suburbs a generation ago). Where will the hits come hardest on these muni BKs? To the pensioners. "In Central Falls, where a state receiver filed for bankruptcy in August 2011, pensions were reduced by as much as 55 percent." source: http://www.msnbc.msn.com/id/47950450 Why Stockton is hurting is because: (a) they're in the nosebleed section of the Bay Area & Sacramento area where real estate prices pushed sky-high during the boom but came back to earth; while in the meantime the government spendaholics just kept on spending and making promises to .gov workers on plush retirements that just couldn't be kept. (b) Just look at the income tax rates in California and you'll see why/how people are fleeing the Golden State. ---------- 3/17/2013: Bullish on nothing - 100 percent in cash. Last modified: 2012-06-27 08:19:18 by degaston Reason: Stockton specifics 2012-06-27 08:15:50 Permalink
Jwm_in_sb Posts: 1041 Incept: 2009-04-16 California Desert	Haha....here's a little tidbit about Stockton. Back during the housing boom they were building.....3,000 new homes per year. 3,000....in a town/city of 300K people and where the biggest employers were all public entities. 2012-06-27 08:21:44 Permalink
Flappingeagle Posts: 1227 Incept: 2011-04-14	Quote: They are just making official the position that basically every city and state is in. Hell the whole country is in the same position. Just havent made it all official like. Lol. +1 ---------- Here are my predictions for everyone to see: S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu. "You can't build a house of cards on a shaking table." - Tony Johns The January 2015 AMZN put at $130 (cost $4.25) will be a winner. 2012-06-27 08:47:51 Permalink
Aliveh Posts: 4045 Incept: 2008-01-18 Los Angeles	the article i read didn't mention anything about the role of pensions in stockton so i did a few quick searches on online databases. 94 people from stockton in the Calpers/Calstrs system are in the >$100,000 pension club... 2012-06-27 09:00:20 Permalink
Noodleman Posts: 2391 Incept: 2008-11-01	Stockton is known as 'America's Capital of Foreclosures'. The city has been overrun by illegals. The banks were giving gardeners, tree pruners and restaurant workers $400,000 mortgages with nothing down. It was a free-for-all. 70%-80% of the babies born in San Joaquin hospital (200 bed hospital w/ 200,000 outpatient visits annually) are anchor babies. To service the illegals they had to build an empire of government workers. No private sector to support it. The outcome is bankruptcy. ---------- "Ammunition beats persuasion when you are looking for freedom." Will Rogers, 4 Nov 1879 - 15 Aug 1935 2012-06-27 23:28:47 Permalink
Expy Posts: 14672 Incept: 2007-09-05 Start the Demonization -Libtards!	Wow! ---------- "IT'S THE INCOME/CASHFLOW SILLY"! {c expy } Where will incomes, wages, and profits/revenues come from to recover the economy after the spiral down? Certainly not the "New Service Economy". W/out massive new debt creation, [unlikely], and useful productivity, the public and business are probably screwed by a 2012-06-27 23:37:33 Permalink
Mezcal Posts: 1832 Incept: 2007-08-04	Nice, tight little synopsis there, Nood. I believe the zero-down, no-doc mortgages were closer to $600K but that's a minor quibble. ---------- "God knows who is a counter-party to whom in the mammoth international cluster*** of accounting fraud that passes for a commerce in capital."* Kunstler, 13 June 2011 2012-06-27 23:44:47 Permalink

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