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"Bankruptcy Only Choice Left" As Stockton Set To Become Largest US City Chapter 9

Tyler Durden's picture




 

As mediation with the city's creditors fails, the California city of Stockton looks set to become the US' largest ever city bankruptcy. The city with the second largest foreclosure-rate in the nation has seen its property taxes and other revenues decline while retiree benefits drained city coffers, according to the SF Chronicle. The city manager, Bob Deis, spoke to a special council meeting tonight, noting (via Bloomberg):

  • *STOCKTON CREDITOR TALKS FAILED TO END CRISIS, OFFICIAL SAYS
  • *STOCKTON CITY MANAGER SAYS TALKS ON DEBT WON'T AVOID INSOLVENCY
  • *STOCKTON CITY MANAGER SAYS BANKRUPTCY `THE ONLY CHOICE LEFT'

and in an earlier interview with Cavuto, the city manager said:

"Right now, we have hit the wall.

 

 I mean, we have done all the cutting we are going to do.

 

We are going to run out of cash. We need to make some hard decisions so that we can restructure our finances and go forward."

and went on in a Bloomberg story to add:

"The whole purpose of filing Chapter 9 is to avoid an uncontrolled chaotic situation, bankruptcy provides the equivalent of a pause button. It retains services and provides structure so you don't have a bunch of lawsuits."

 

Paging Ms. Whitney for a told-you-so-dance...

 

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Tue, 06/26/2012 - 23:23 | 2563868 toady
toady's picture

Stockton was a shithole twenty years ago. I imagine its significantly worse now.

Tue, 06/26/2012 - 23:51 | 2563947 SHEEPFUKKER
SHEEPFUKKER's picture

It's an abandoned shithole now. 

Tue, 06/26/2012 - 23:58 | 2563962 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Easy there my friend. Stockton was a shithole only because the people are full of shit.

I left that crap hole in 1995 and have never been back.

Drug dealers sold heroin and cocaine less than three blocks from the main police department. The dealers could see cops going to their cop cars, which were parked under the newly completed section of I5 to 99 hwy, while they sold drugs in the open. You can not blame the police for not stopping the illegal activity, since their boss cops got a a big cut of evey deal that was made.

My cousin became a meth addict in Stockton. After we got him cleaned he took me by the house where he used to buy the best product. A Stockton police officer lived in that house. I could not believe it.

 

Stockton is more corrupt than Chicago

Wed, 06/27/2012 - 00:04 | 2563978 The Big Ching-aso
The Big Ching-aso's picture

 

 

Obviously if they had just unionized the drug dealers their pension fund debacle never would've happened.

 

Wed, 06/27/2012 - 07:26 | 2564411 TrainWreck1
TrainWreck1's picture

Tom Daschle would Federalize them.

Wed, 06/27/2012 - 00:18 | 2564004 toady
toady's picture

Exactly my friend.

I was there to run a street sweeper on the crew that was working on the I5 portion of that project.

I had to dump out the dirt under a section of the highway near where you are talking about. Every time I went down there dealers or junkies were jumping on the truck try to sell me dope or begging me to buy them dope.

Like I said, shithole.

Wed, 06/27/2012 - 00:39 | 2564044 Joseph Jones
Joseph Jones's picture

Age upper 50s.  Born and raised in San Francisco, moved to Marin then later Sonoma County about 37 years ago, then moved to Utah about six years ago. 

If I had Dimon's money I'd not live in the shite hole AKA California.  When I visited Petaluma and Napa a few months ago, by comparison to where I live, CA was like a 3rd world nation.  Just read that Petaluma plans to add another 1/2% sales tax (already about 8.5) and increase the hotel tax, as if anyone with a brain would sleep there.  

The abject gall of our friend in Petaluma calling it "God's Country"!  Yeah, and monkeys may fly out my arse! 

Stocktonites I have a tip for you: cut your losses and move! 

Wed, 06/27/2012 - 02:57 | 2564213 jomama
jomama's picture

lol, Utah.

I'll stay in Marin, thanks.

Wed, 06/27/2012 - 03:44 | 2564250 cbxer55
cbxer55's picture

My wife and I left CA in 2002, moved to Oklahoma City. Been doing fine ever since, better than we ever did in calipornia.

Wed, 06/27/2012 - 11:57 | 2565210 CommonSense89
CommonSense89's picture

Comparing Utah to Marin...lol. There are some nice rural place in America, Utah aint one of them. Marin shits on pretty much every county in the US besides a few others.

Tue, 06/26/2012 - 23:23 | 2563870 SwingForce
SwingForce's picture

Whatever happened with Harrisburg PA? A coverup, yes.

Wed, 06/27/2012 - 00:38 | 2564042 10mm
10mm's picture

Harrisburg is still fucked up.Im less than a mile from the corrupt State House and corrupt City Hall.Nothings changed.A fucking city with maybe 48K citizens,WTF.

Wed, 06/27/2012 - 01:49 | 2564147 CaptainObvious
CaptainObvious's picture

At the moment, Harrisburg is in limbo since the bankruptcy declaration was labeled "improper".  Those uppity city council members didn't ask the state for permission, how dare they.  The state is probably going to take over the incinerator that caused the bankruptcy, which sucks because it is a revenue generator for Harrisburg.  Whether the state takes over the capitol city or not, the residents of Harrisburg are still fucked with a splintered wooden dildo.

Tue, 06/26/2012 - 23:24 | 2563873 homer8043
homer8043's picture

So Stockton holds the record for how long until Detroit goes under?

Tue, 06/26/2012 - 23:26 | 2563880 Conman
Conman's picture

But Obama says he saved detroit.

Wed, 06/27/2012 - 00:33 | 2564029 jonjon831983
jonjon831983's picture

Whack-A-Mole

Wed, 06/27/2012 - 07:54 | 2564443 Kickaha
Kickaha's picture

The Repubs running Michigan these days passed a law which prohibits local governmental units from filing a Chapter 9 case unless they first report their insolvency to the State, which then appoints an emergency Manager to assume all power formerly held by the duly elected local officials.

This means that the governor gets to hand-pick his own guy to move in, take over, and completely fuck over all non-Republican constituencies in any city that can't pay its bills.

Replacing a duly-elected local city government, almost all of whom are Afro-Americans, with some white guy picked by a white governer in Lansing is a sensitive matter.  Negotiations are currently underway.

Detroit may never actually file Chapter 9.  Even if bondholders are affected (as opposed to city workers and city residents), the emergency manager will probably negotiate haircuts under threat of filing Chapter 9.  

In the end, there will still be a City of Detroit, mostly populated by whitetail deer, raccoons, opposum, coyotes, and people too young, too old, or too poor to move away, living in decrepit post-WW II houses, with no city services.  Bondholders will get the max the emergency manager can wring out of the city taxpayers and city assets, and feel like they dodged a bullet despite getting a bad haircut.

Tue, 07/17/2012 - 11:41 | 2624452 Offthebeach
Offthebeach's picture

You'd think Krugman and company who are
Always so busy telling everybody how to run the world would do Detroit and show everybody how d'keynsian magic be heap big medicine.
Right?
Anyone?
( cricket sounds )

Tue, 06/26/2012 - 23:28 | 2563877 tekhneek
tekhneek's picture

Can we all just go ahead and agree that spending more than you make is not a "crisis" but more a problem of budgeting and responsibility?

The sooner people realize this the better but who am I kidding. It's almost 10:30 and I'm drunk.

Tue, 06/26/2012 - 23:37 | 2563907 zorba THE GREEK
zorba THE GREEK's picture

Being drunk does not preclude you from being right,

it just makes you get to the point a lot quicker.

Tue, 06/26/2012 - 23:49 | 2563919 Dr. Engali
Dr. Engali's picture

Everything is a crisis in the political realm. If there weren't so many crisis (caused by them) why would we need our glorious leaders?
Btw it's 11:40 and I'm just getting started.

Wed, 06/27/2012 - 00:16 | 2564001 Jena
Jena's picture

I think the crises are just getting started but it's earlier here.  9:15 and I'm entirely too sober.  Must get to work on that.

Wed, 06/27/2012 - 00:57 | 2564078 spdrdr
spdrdr's picture

Why on earth are all of you drinking so early in the day?

At least have the decency to wait until evening......

Wed, 06/27/2012 - 02:26 | 2564181 slewie the pi-rat
slewie the pi-rat's picture

they're nekkid too

Wed, 06/27/2012 - 12:25 | 2565298 Jena
Jena's picture

The neighbors have a watch program.

Tue, 06/26/2012 - 23:25 | 2563878 d2themfi
d2themfi's picture

Honest question: what can you expect to happen within the city if a city this size defaults? I have no idea. I assume the debt gets wiped clean and interest rates for borrowing soar.. Anything else?

Tue, 06/26/2012 - 23:52 | 2563948 Matt
Matt's picture

Well, if the bankruptcy court tries to implement changes to payouts for city workers, current and retired, expect strikes.

Wed, 06/27/2012 - 00:20 | 2564005 JuicedGamma
JuicedGamma's picture

Cities don't need to default to be basket cases, Detroit is a leading example.

Wed, 06/27/2012 - 02:21 | 2564176 GMadScientist
GMadScientist's picture

I love the smell of burning monolines.

 

Tue, 06/26/2012 - 23:25 | 2563879 SwingForce
SwingForce's picture

This DANCE is bullshit, somebody is paying Sockton's billz... er, paging Mr. Herman

http://www.youtube.com/watch?v=5Qazaaq0msA

 

 

Wed, 06/27/2012 - 01:01 | 2564084 Ineverslice
Ineverslice's picture

Mr. P W Herman....lol

Nothing is going to happen as usual...they got this covered.  I along with MISH was waiting for this to happen in '09.  Yeah, look at Harrisberg and Vallejo.  Dominoes, haircuts my ass.  It's all a frickin' joke like Pewee's Adventure.  Just carry on and get drunk.   Joke.

Tue, 06/26/2012 - 23:27 | 2563884 ghenny
ghenny's picture

I hear dominoes falling all over the Country.  Congratulations MS Whitney.  I am going to enjoy the media financial shills eating humble crow after treating you like yesterday's garbage for the last two years.

Tue, 06/26/2012 - 23:33 | 2563886 El Oregonian
El Oregonian's picture

Stockton - Stockmarket - Does it really matter? In the very near future anything with stocks in it will be heading in the way of Chapter 9... Waiter, check please...

Tue, 06/26/2012 - 23:30 | 2563894 Bill D. Cat
Bill D. Cat's picture

Rangel declares victory . I'm at a loss for words .

Tue, 06/26/2012 - 23:57 | 2563960 Overfed
Overfed's picture

If I rubbed a lamp and a genie came out and gave me just one wish, it would be that Charlie Rangel and every other corrupt politician in this country would all be simulaneously kicked in the nuts by the biggest fukkin' mule that you ever saw.

Wed, 06/27/2012 - 02:24 | 2564178 GMadScientist
GMadScientist's picture

You could wish that they all die from asphyxiation caused by terminal location of their craniums in their rectums.

 

Wed, 06/27/2012 - 01:03 | 2564088 Joseph Jones
Joseph Jones's picture

Try Solomon, King David's son: "A dog returns to its vomit."

Tue, 06/26/2012 - 23:32 | 2563898 RobotTrader
RobotTrader's picture

Meridith Whitney still curled up in the fetal position sucking her thumb.

 

Muni-bond ETF's have been on a tear for 2 years, New York and California leading the advance:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72197115

I tried shorting a few times and got killed.

Tue, 06/26/2012 - 23:35 | 2563905 SwingForce
SwingForce's picture

Because "somebody" takes over and pays the billz for them...... 

Wed, 06/27/2012 - 00:07 | 2563982 Yen Cross
Yen Cross's picture

  Ya just don't get it?  Look @ bond spreads ( Italy/Spain vs (bunds)?

Wed, 06/27/2012 - 00:17 | 2564003 JuicedGamma
JuicedGamma's picture

Hey Robo, I hear Abby Joseph Cohen is bullish.

Wed, 06/27/2012 - 02:26 | 2564180 GMadScientist
GMadScientist's picture

Wise chief say white-shoe chase-em yield make-em good buffalo jump. Much sadness.

 

Tue, 06/26/2012 - 23:34 | 2563902 tsuki
tsuki's picture

Ship all the jobs overseas, lower interest rates to promote homeownership, have the populace draw out the equity of the house to live in lieu of wages.  What can go wrong?

Tue, 06/26/2012 - 23:40 | 2563915 Seasmoke
Seasmoke's picture

+3.95%

Wed, 06/27/2012 - 05:47 | 2564318 disabledvet
disabledvet's picture

Or in the case of Greece "+395%"

Tue, 06/26/2012 - 23:37 | 2563908 dbomb12
dbomb12's picture
The Dominoes Begin to Fall
Tue, 06/26/2012 - 23:38 | 2563910 dbomb12
dbomb12's picture
Tue, 06/26/2012 - 23:38 | 2563912 RobotTrader
RobotTrader's picture

I'm sure Sacramento will bail out Stockton by annexing it to another city, all the benefits and pensions will be reinstated, although at a slightly lower level.

 

Just another "Wash, Rinse, Repeat" cycle repeating anew.

There will be no reforms.

There will be no abolition of Fractional Reserve Banking.

There will be no audit of Ft. Knox.

Numerous "failures" will be patched up as they have always been.

Tue, 06/26/2012 - 23:41 | 2563921 SilverTree
SilverTree's picture

Why all the optimism Robo?

Tue, 06/26/2012 - 23:52 | 2563949 rosiescenario
rosiescenario's picture

.....not so sure anyother city would be willing...oh wait, maybe Lodi?

Tue, 06/26/2012 - 23:58 | 2563964 dwdollar
dwdollar's picture

Maybe the state of California can bail them out. I hear they are doing really well.

Wed, 06/27/2012 - 01:06 | 2564091 Ineverslice
Ineverslice's picture

Exactly. Next....what else you got.

Tue, 06/26/2012 - 23:40 | 2563916 Son of Loki
Son of Loki's picture

Since the Dems and Repuugnicans are deadlocked in Cali.......best thing is to go bankrupt and re-negotiate all the contracts based on the reality of todays economy.

Tue, 06/26/2012 - 23:59 | 2563970 prodigious_idea
prodigious_idea's picture

That's really the question isn't it?

If a city/county/state entity goes BK, does the Trustee get to nullify/renegotiate the worker's/retiree's pay/benefits?  I imagine the answer is more complex than a yes/no, but I'd be interested in an informed reponse.

Wed, 06/27/2012 - 00:08 | 2563985 Real Estate Geek
Real Estate Geek's picture

If I recall correctly, the unionized public employees of Vallejo. CA got Quantico-style buzz cuts.

Wed, 06/27/2012 - 02:27 | 2564182 GMadScientist
GMadScientist's picture

Not while still having the trash collected and crackheads arrested, no.

 

Tue, 06/26/2012 - 23:42 | 2563925 RSDallas
RSDallas's picture

It is about fu@£ing time. I am pissed that it has taken this long. This is where this sh@*t started and this is where it will end.

Tue, 06/26/2012 - 23:43 | 2563929 lolmao500
lolmao500's picture

Soon coming to the national level.

Tue, 06/26/2012 - 23:46 | 2563937 torabora
torabora's picture

It's a decrepit Hiway 99 shithole full of vatos locos. It also has this port so it built a dock community called Discovery Bay and people lost fabulous amounts of money going into debt for these overpriced squished together McMansions. It's a place every self respecting loser went to get their clock cleaned. Meanwhile the rest of the joint is a free fire zone.

Tue, 06/26/2012 - 23:47 | 2563938 Max Cynical
Max Cynical's picture

Looking forward to more record setting municipal bankruptcies.

Tue, 06/26/2012 - 23:56 | 2563942 bob_dabolina
bob_dabolina's picture

There is only one logical conclusion to justify this.

Stockton CA is racist.

63% of the population in Stockton is non-white.

The fact that this type of bigotry is even possible in this day and age is offensive to Americans everywhere.

I would HOPE that Attorney General Eric Holder investigates this incidence of prejudice and prosecutes the town of Stockton to the full of extent of the law.

This is CLEARLY a violation of the civil rights act.

Tue, 06/26/2012 - 23:56 | 2563954 Matt
Matt's picture

You mean municipal bond purchasers are rascist, since they failed to keep buying Stockton's debt to keep it affordable.

Wed, 06/27/2012 - 00:23 | 2563976 bob_dabolina
bob_dabolina's picture

An investigation should be opened on the municipal bond purchasers as well.

They are CLEARLY in violation of the civil rights act and should be investigated in a fully transparent manner.

This should not be tolerated! A FULL and TRANSPARENT investigation should be conducted!

It shall be known that this type of racism will not be allowed!!

Once Obamacare is overturned by the Supreme Court Obama should mandate by Executive Order that Americans buy Stockton CA municipal bonds in order to maintain equality.

Holder!!!! FREEEEE CORZINEEEE YOU CORUPT PERSON!!!!! DON'T KEEEEP HIM JAILED FOR STEALING BILLIOns....

shit.

Wed, 06/27/2012 - 00:33 | 2564032 Hulk
Hulk's picture

Bob getting his MDB on !!!

Wed, 06/27/2012 - 01:27 | 2564037 bob_dabolina
bob_dabolina's picture

Don't be racist.

Wed, 06/27/2012 - 04:54 | 2564297 MisterMousePotato
MisterMousePotato's picture

i logged in just to bump bob. outstanding. bon mot.

Wed, 06/27/2012 - 00:49 | 2564065 fleur de lis
fleur de lis's picture

By the way, where is that cockroach Corzine these days? Since he's never going to get sent to the slammer for his multitude of crimes, where does he spend his time? 

Wed, 06/27/2012 - 01:55 | 2564156 CaptainObvious
CaptainObvious's picture

He's bundling for Obama, which is why his ass isn't sitting in a jail cell where it belongs.

Wed, 06/27/2012 - 02:52 | 2564211 jomama
jomama's picture

pot, meet kettle.

Tue, 06/26/2012 - 23:56 | 2563956 rosiescenario
rosiescenario's picture

Just the start.....property assessments are coming down in every city in CA, sales tax receipts are off, and yet public servants are thinking they will retire at 100% pay levels???????

 

 

Wed, 06/27/2012 - 00:10 | 2563986 Dr. Engali
Dr. Engali's picture

I think you just violated some code or something. You used public and servant in the same sentence. Now if you had used public and asshole then I wouldn't have junked you. Other than that we are in complete agreement. I hope there is no hard feelings.

Tue, 06/26/2012 - 23:57 | 2563958 Yen Cross
Yen Cross's picture

   Stockton was the hub , for the Central Valley. Driving through the central valley smells like " Brusell Sprouts" & " Asparagus/artichokes.

                               Coastal Pines and lots of "Weed" .

Tue, 06/26/2012 - 23:59 | 2563969 Global Hunter
Global Hunter's picture

Here it comes...here it comes...here it comes

Wed, 06/27/2012 - 00:11 | 2563992 Yen Cross
Yen Cross's picture

 Vineyards /Cambria & Monterey?

Wed, 06/27/2012 - 00:37 | 2564041 Global Hunter
Global Hunter's picture

nowhere that was just fear talking

Wed, 06/27/2012 - 00:08 | 2563984 TN Jed
TN Jed's picture

Honest question....what are the consequences of something like this?  Real world, rubber meets the road consequences.  If Stocktonians ultimately spent themselves broke, will they actually feel the error of their collective ways?  Most people think of bk as a fresh start and I'm wondering where exactly the credit system net ends. Somebody will get hurt but will it be the voters?

Wed, 06/27/2012 - 00:25 | 2564012 JLee2027
JLee2027's picture

The "voters" want their money. They've been bribed. With the rejection of Ron Paul - It's crystal clear that this can only end one way...the largest financial crash in human history.

Wed, 06/27/2012 - 01:41 | 2564139 azusgm
azusgm's picture

There is hope. If the Big Kaboom happens before the Republican national convention, maybe Mitt will see what a cosmic cow patty the next occupant of 1600 Pennsylvania Avenue will land in. His platform has been mostly "I am convinced I should be President." He should glance around and say, "Uh, I've changed my mind." and retreat.

Go away, Mitt and leave the disaster to the guy who has been trying to tell you and the rest of us that the Fed and fiat have made a true crisis inevitable.

With Obama or Mitt, we are screwed...totally.

Wed, 06/27/2012 - 03:44 | 2564253 cbxer55
cbxer55's picture

As a Republican, I do not intend to vote this year. All of us Republicans should do the same. Don't like ROMNEY, HE'S A ZOMBIE.

Wed, 06/27/2012 - 04:58 | 2564298 MisterMousePotato
MisterMousePotato's picture

i believe romney will prove to be the worse of the two, and will not vote for him.

i will vote for obama, and convince as many others as i am capable of to do so likewise.

and i, if you can believe this, am a conservative slightly to the right of ann barnhardt.

Wed, 06/27/2012 - 05:21 | 2564306 Lucky Guesst
Lucky Guesst's picture

Gary Johnson 2012!

Wed, 06/27/2012 - 08:07 | 2564467 sessinpo
sessinpo's picture

As a registered republican myself.  I don't intend to vote simply because I'm sick of both main parties. Republicans to me are liberal lite and I rant against both parties here on ZH, but mostly against liberals and socialism. The only reason I haven't changed my affiiliation is because of convoluted rules which denies independents to vote in either a democrat or republican primary.

Wed, 06/27/2012 - 00:31 | 2564014 newengland
newengland's picture

Honest reply: debtors seeking relief from government will be disappointed and struggle.

The Feds will feast at the famine, for they are immune as they enjoy every protection gifted by taxpayers.

Some small consolation: the USA is a big country and community, better placed than the serfs in Europe, South America and the Far East, Africa, and Middle East  who will starve and die.

Wed, 06/27/2012 - 01:02 | 2564077 Boxed Merlot
Boxed Merlot's picture

Honest question....what are the consequences of something like this?...

 

Honestly, I don't know if anyone knows for sure.  I don't see much difference personally.  My 3 different containers for refuse all got picked up this morning, (green, recylables and garbage).  My water is still running, my toilets still flush and the lights are still on.  Now when those things are interupted it will likely cause my home's value to diminish further as infrastructure utilities define it's current "value".  There are some police officers that are ticked at the old timers that recently retired, but what are they going to do?  Likewise for the firefighters.  The north Stockton police station closed up a while back, but I haven't noticed too much difference, the sound of gunfire has remained much the same as it did when it was open.  Stay off of MLK Jr Boulevard, Wilson Way and 8th street after midnight and your chance of survival greatly increase.  But that's always been the case. 

Wed, 06/27/2012 - 04:33 | 2564286 EverythingEviL
EverythingEviL's picture

I live here too, on the north side. Glad to see a fellow Stocktonian on Zerohedge

Wed, 06/27/2012 - 09:58 | 2564770 Boxed Merlot
Boxed Merlot's picture

Where would you rather be than right here, right now?

Ground Zero.

First one out the door recovers the soonest. 

Come on in boys, the water's fine!

Wed, 06/27/2012 - 11:46 | 2565178 EverythingEviL
EverythingEviL's picture

LOL I was thinking the same thing last night, at least we're one of the first! 

Wed, 06/27/2012 - 00:15 | 2563998 JLee2027
JLee2027's picture

Charlie Rangel just got a primary win, so the voters are still going for the money - not reality. The sooner the economic reality comes home to roost the better for everyone.

 

 

 

Wed, 06/27/2012 - 00:21 | 2564006 hedgehog9999
hedgehog9999's picture

From the PIIGS to California and the next nearest bankrupt state or municipality is yours. They will all default in due time because of the lavish unsustainable pensions they assigned to their local government brothers.

Wed, 06/27/2012 - 05:04 | 2564301 MisterMousePotato
MisterMousePotato's picture

it's not just the pensions.

it's the current remuneration and etc.s, too.

free cars. lavish offices and staff. cell phones and plane tickets to vegas. personal watercraft per diems and you name it.

true case: a (nothing special) high school teacher in illinois making $650,000 a year. name is timothy bowman, iirc. look it up. public record.

There are MILLIONS like him.

it's not just the pensions.

Wed, 06/27/2012 - 00:22 | 2564007 newengland
newengland's picture

What is bankrupty? It's a fancy name for a fallen thing. A thing falls under its own weight. It is the natural order that no politician thieving tax and bribing voters can prevent. It is the natural order when the weight of debt is greater than income and wealth.

End the Fed.

Wed, 06/27/2012 - 00:23 | 2564009 Dr. Engali
Dr. Engali's picture

How can we ever hope to progress when a ,dirt ball gutter slime, douche bag, cum guzzling gutter slut like Rangel gets re elected? We are totally fucked.

Wed, 06/27/2012 - 01:30 | 2564123 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

What about all the other dirt balls?  Why is Rangel singled out?

Wed, 06/27/2012 - 02:57 | 2564140 Dr. Engali
Dr. Engali's picture

Because that fuck criminal just got re elected in the primaries after being censured in the house for tax evasion.

Rangel was convicted of 11 ethics violations in 2010, including failure to pay some taxes and using congressional resources to raise money for an academic center bearing his name.

If people will re elect this corrupt fuck for his 22nd term then there is no hope for the republic.

Wed, 06/27/2012 - 00:28 | 2564020 slewie the pi-rat
slewie the pi-rat's picture

so much boilerplate for any city;  libraries;  sewers;  buses;  people!

stockton is a port, btw, with an interesting history, as in so much of CA

usta go there with my kids and camp;  the campground had its own pools and water slides and wasn't overcrowded

the kids loved it and i can't remember what the adults did...

Wed, 06/27/2012 - 00:32 | 2564027 I am a Man I am...
I am a Man I am Forty's picture

"Paging Ms. Whitney for a told-you-so-dance..."

Nice try, but the call she made was for a 100 large municipal bankruptcies LAST YEAR, timing and quantity matter.


Wed, 06/27/2012 - 00:38 | 2564045 lolmao500
lolmao500's picture

From earlier this year...

"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%. "

Cops and firefighters salaries/pensions making up 82% of the total budget... nice.

Wed, 06/27/2012 - 02:00 | 2564159 vft2212
vft2212's picture

82% is also the number our entitlements ( 60% ) and defense budget ( 22% ) comprise of the US Budget.

Everyone haggles over how to cut/shave/split the 18%, Stockton was viewable 4 years ago as a bankrupt.

For those unaware states can not file for bankruptcy. Ca & Mich State G.O's have been home runs the past

couple years.

Wed, 06/27/2012 - 00:41 | 2564050 1971
1971's picture

Like I said before. The idiots that ran Stockton in 2006 gave Neal
Diamond 1 million dollars to sing for a couple of hours at the opening of the new downtown minor league sports complex. If that isn't bad enough, you only had to work for the City of Stockton for one month to receive health care for life. I can't wait to see more Ca. cities eat shit.

Wed, 06/27/2012 - 00:57 | 2564081 monopoly
monopoly's picture

They just have to do what they did to many airline pilots. Stop paying, declare bankruptcy and they get 25% of their pension for the rest of their lives. We cannot afford their pensions, perks, medical, dental and their life insurance. It is over. In every city of this country. The people just have to wake up and change it all. Sorry guys, can't give what we promised. We are all broke. How is it that my tax dollars allow firefighters to buy steaks at the super market, that they barbecue at the fire house and my family is eating hamburger. Enough. STOP IT>

Wed, 06/27/2012 - 00:57 | 2564082 monopoly
monopoly's picture

They just have to do what they did to many airline pilots. Stop paying, declare bankruptcy and they get 25% of their pension for the rest of their lives. We cannot afford their pensions, perks, medical, dental and their life insurance. It is over. In every city of this country. The people just have to wake up and change it all. Sorry guys, can't give what we promised. We are all broke. How is it that my tax dollars allow firefighters to buy steaks at the super market, that they barbecue at the fire house and my family is eating hamburger. Enough. STOP IT>

Wed, 06/27/2012 - 06:28 | 2564358 icanhasbailout
icanhasbailout's picture

Government "workers" (LOL like they do anything a normal person would consider to be work) dont' deserve a 25% pension, they deserve zero percent.

 

Any pension money that hasn't been stolen yet ought to go into prosecuting these frauds for their decades of Ponzi schemes and borrowing with clearly no intent whatsoever to ever repay.

Wed, 06/27/2012 - 01:00 | 2564083 lolmao500
lolmao500's picture

Anybody still living in that shithole deserves what they gonna get. That city is like the Detroit of California... perhaps even worse.

Wed, 06/27/2012 - 01:29 | 2564119 Vidar
Vidar's picture

I hope the bitch ass pig cops all over the country lose their pensions and healthcare when all of these cities go under. Bitches sold their souls to the state and now they see that they aren't even going to get the money they were promised. Couldn't happen to a better bunch of assholes.

Wed, 06/27/2012 - 02:35 | 2564188 aphlaque_duck
aphlaque_duck's picture

You think those armed thugs will take it lying down?

Wed, 06/27/2012 - 01:36 | 2564131 What_Me_Worry
What_Me_Worry's picture

"But Deis likens the benefit to a Ponzi scheme. He estimates that the health care obligations amount to $417 million over the next 30 years and said the city will spend more on health benefits for retired workers than for current employees next year."

 

Yeah, well, you know, that’s just like your opinion, man.

Wed, 06/27/2012 - 01:39 | 2564137 Hopeless for Change
Hopeless for Change's picture

LOL

Wed, 06/27/2012 - 01:41 | 2564138 dirtbagger
dirtbagger's picture

Was watching Squawk Box this am an they had the treasurer from Maryland on.  She was bragging about how the state had decreased unfunded liabilites from about 48% to a bit less than 60%.  The state had also decreased their expected pension return from a little over 8% to 7.75 %.  This made me spit my coffee across the room.  Do you think any of the talking heads on Squawk Box questioned the anticipated returns of 7.75 %.  Not a peep.

What planet do these people live on.  They all live in a dream world and really seem to believe their on BS.  God help us all.

Wed, 06/27/2012 - 01:44 | 2564143 q99x2
q99x2's picture

Not only that but the place smells like cow shit. Man better roll up the windows when you see the stockton sign on the freeway. Place is cursed with immigrants and cows.

Wed, 06/27/2012 - 02:52 | 2564204 ebworthen
ebworthen's picture

Bankruptcy may be the only choice left for many Americans.

Hopefully, they will have stashed cash in the mattress and "lost" a lot of Gold and Silver in tragic boating and snipe hunting accidents.

"Oh dear, I have nothing left, I need food stamps, unemployment, and medicare."

After watching the banks and insurers pull this trick, it will be divine justice to see 100 million screwed over Amerikans do it for the first time in their life and collapse the ponzi from the top down.

Wed, 06/27/2012 - 02:57 | 2564216 lolmao500
lolmao500's picture
'Jim', a Police Officer Warns of an "Event" in October, 2012... sounds legit.  http://www.youtube.com/watch?v=wALNWwzERQ4

 

Wed, 06/27/2012 - 03:12 | 2564223 jmc8888
jmc8888's picture

The many bankruptcies ahead are just symptoms of much larger problems.  Good thing to know that Helicopter Ben and Tiny Tim are running around the heads of congress in secret meetings pushing for the big America+20 trillion sustainability for oligarchy print. (jab at Rio+20, not an actual number...it's probably far too small of a number)

The people of Stockton will be fucked, but you know Ben will make others whole. Whether it is Stockton's debt, or derivatives, they believe that Wall Street's and London's gambling bets must be saved at all costs and that there is no way to separate the fraud from the legitimate.  Of course this is just another con job.  They're the ones that bought the right to co-mingle everything and put our nuts in a vice grip. 

Prepare for the new bailout that will be bigger than 2008 for us + something for Europe, aka bailout of the oligarchy's fraud through various conduits.   Wall Street and London demand it from their captured politicians.  When the crisis hits it will be ready like the Patriot Act was ready.  The full court press has already been on for a week.

People have to come to grips that in the fraudulent setup, there has been no way for municipalities to avoid this fate.  Sure some are in 'golden' areas, but the end result is the same, the fraud has destroyed us, our physical economy, investment, progress, and every bit of our sovereign avenues to overcome our problems.   It's a shit sandwich and everyone will have to take a bite.

Every municipality is on the Titanic, it's just places like Harrisburg and Stockton were in the lowest class part of the ship so they sink first.  So we shouldn't be bickering over the various symptoms or decisions they could of made to screw people over to delay their fate, the fate with any of the decisions they could of made was already set.  Even if they somehow changed tactics and thus upgraded Titanic ticket classes by changing pension levels, this or that, whatever it is, the end result would be the same.  They were going broke.  The fraudulent setup will sink us all.   All the mainstream economic ideologies are wrong, and are oligarchical in nature. 

Either use your sovereignty to be good stewards of the physical economy and push scientific progress, or allow the train wreck of monetarism of any form to destroy you.  Last I checked, Stockton didn't have anything to do with outsourcing, wars, federal reserve, ditching of the maintenance and expansion of and the means to expand the physical economy. 

Glass-Steagall....when you understand that the derivatives, the securitization, and the tying of the bets together with the deposits (among many other things) were all allowed by first weakening and then repealing of this law, you realize that some people (Harrisburg, Stockton, every municipality) in this shitshow were circling the wagons for certain special interests like unions or some other people like say tax cuts for the rich aren't the problem, it was always the fraudulent setup and legitimizing thereof.  They made choices, desperate choices forced upon them that did not change their overall fate, just an attempt to shield whatever faction led them.  But last I checked Stockton didn't vote out Glass-Steagall, didn't push securitization, etc.  Wall Street and worldwide financial oligarchs like City of London did.

All over this country people are fighting for scraps no matter the party, class, ideology instead of taking on the real problem.  Whoever is in power, will cater to one side, and the other side will say 'that is the problem'.  

In the end, most of the rich will be broke.  The poor will starve and be homeless.  It isn't because of tax cuts. It isn't because of tax raises.  It isn't because of welfare.  It isn't because of pensions.  People are focusing on symptoms as if they matter.  They don't matter nearly as much as people think.  Basically the choice any of them choose isn't the cause and no matter what they choose their fate is out of their hands.  What they choose sure in the hell ain't the solution, it just is a feeble attempt to protect some segment that is in control. 

It will fail because the fraud is ideologically embedded worldwide.  Only utilizing their power to push for the solutions (all well known) can keep the worst from happening, and a real recovery to begin.  But you need Glass-Steagall.  With that you separate the legitimate from the gambling debts.  Get the deposits out of hock.  You need to let the bets fail.  Kill the securititization machine.  Kill the derivatives beyond legitimate commercial usage.  Create credit as sovereigns can for scientific progress, for wealth creating projects, etc. 

Isn't it amazing that after letting the forest service be crushed, and not developing the land in a real way, even though plans have been around for 50 years, the West is on fire needlessly every year? Look at Colorado and New Mexico.  Completely avoidable.  But we didn't follow the American spirit.  We followed Wall Street fraud with imported ideology.  Now people want to say the defrauded will get their comeuppance.  Let's start with the fraudsters instead, and then we'll realize guess what, the rest of the crap is manageable.  The only ones that deserve the comeuppance, are the fraudsters. 

If half the people were told that red light is green and green is red, and the other half the natural way, I guess the resulting car crashes would be the fault of the people?  No.  Instead of trying to figure out individually who is to blame in the crashes, wouldn't it be best to go after who told you this and change it back to a known standard that in our history worked?

Glass-Steagall

American Credit System

Wed, 06/27/2012 - 10:27 | 2564906 Iconoclast
Iconoclast's picture

Enjoyed that read. Thanks

Wed, 06/27/2012 - 03:29 | 2564244 TheObsoleteMan
TheObsoleteMan's picture

Meredith Whitney WILL be vindicated. I read a prospectus just last night from a high yield municipal bond fund. In it, the fund manager was mocking the call she made last year. Don't be so fast. She was, is, and will be right about the coming municipal meltdown, coming soon to a town, city and state near you. The vast majority of bonds that comprise municipal bond funds today are Revenue Bonds, the worse kind. They are solely dependant on the revenue generating capabilty of the "asset" they back {hospitals, tolls, nursing homes, libraries, half way houses, addictions treatment facilities,etc}. Good luck with those! Most of these funds are purchased by unsophisticated retirees looking to supplement their incomes, and are sold on them due to their high yields and tax exempt status. According to the prospectus, 3% of the portfolio was allready in default as of 2/29/2012! Many of the bonds are illiquid and unrated. Don't be afraid to talk to your elderly family members about their investments. If they are holding ANYTHING that says:High yield, especially high yield municipal, explain to them they are holding a ticking time bomb, and the fuse is getting short. Many have not even read the prospectus, and would'nt understand it if they did. They bought them on the reconmendation of the friendly young man/woman at their bank {JP Morgan/Chase, Wells Fargo, Bank of America, the usual suspects}.

Wed, 06/27/2012 - 03:51 | 2564259 TheObsoleteMan
TheObsoleteMan's picture

Another thing I should mention, these funds are overweight:California, Illinois, Nevada, Florida, Michigan, New Jersey and Ohio. That alone should tell you something.

Wed, 06/27/2012 - 03:55 | 2564263 fiddy pence haf...
fiddy pence haff pound's picture

Well, it's about time.

 

Now's the right time to f%$&^&k the unionised civic employees and the teachers, because they caused the bankruptcy, not corrupt politicians and not GS/JPM.

-signed Mish and Denninger

AHAhaahahahahahahahhahHAHAHAHa debt jubilee, please

Wed, 06/27/2012 - 09:05 | 2564557 aldante
aldante's picture

No, they are not the cause - they are the symptom. They are also being used by the elites as dependents to the current system. They elites know they need "ground troops".

Wed, 06/27/2012 - 06:16 | 2564343 IMA5U
IMA5U's picture

The city of John Stockton

Led the league in assists

And was also good at steals.....even if he was white....

 

Time for him to steal from the rest of the country

Wed, 06/27/2012 - 06:30 | 2564360 magpie
magpie's picture

How the tides of history recede...California the great hope of the last depression...now not so much.

Wed, 06/27/2012 - 07:10 | 2564389 XtraBullish
XtraBullish's picture

Just like clockwork, read the final chapter in Mike Lewis' "Boomerang - Travels in the New Third World". He interviews a fireman in that town who is about to "retire at 40" after 20 years on the job playing gin rummy in the firehouse 90% of the time and is about to get $80k a year until he leaves this world. Cops are the same and they won't budge on benefits. So guess what? Kill the Golden Goose (bankruptcy) and then fire all the asshole politico scumbags that inked those union contracts for the cops and the firemen and then start over. The big reset is going to happen in Europe and then it hits the gold ol' US of A, the most gigantic Ponzi scheme in the history of mankind. I see the USD collapsing which is why China and Russia are entering into all of these non-USD trade agreements with Chile, Brazil, India etc. The offset trade is obviously anything non-US/non-Euro which means hard assets or short US cash. If someone knows exactly "WHEN" to pull the trigger, please let me know.

Wed, 06/27/2012 - 08:03 | 2564461 TrainWreck1
TrainWreck1's picture

Liquidate it.

 

Wed, 06/27/2012 - 08:09 | 2564472 yogibear
yogibear's picture

New York, Chicago and many other cities need to join the over-spending bankruptcy club. These cities keep thinking they have an infinite tax base.

Wed, 06/27/2012 - 08:14 | 2564479 sessinpo
sessinpo's picture

They are already in the club. It's just the fact that they aren't facing up to the membership dues like Stockton is and facing reality that they "really" don't have the money. That is after all why they are in that club.

Wed, 06/27/2012 - 08:10 | 2564476 sessinpo
sessinpo's picture

As they say, "So goes California, so goes the nation." Hope you're prepared.

Wed, 06/27/2012 - 08:16 | 2564484 Bicycle Repairman
Bicycle Repairman's picture

Anybody who thinks that the pensions and other retirement vehicles of hundreds of millions of Americans could be cut or eliminated without serious consequences is drinking some funky kool-aid.  No politician will touch this issue with a 10 foot pole.  Anyone seen Rick Parry lately?  Bondholders will get stiffed first.  Ask GMs bondholders about how it works.

Wed, 06/27/2012 - 09:27 | 2564644 lakecity55
lakecity55's picture

Barry X Dick O'Bama will use taxpayer bucks to bail out Compton, hell, the whole state.

If the SC throws out CommieCare, he'll say "healthcare is too important to be left to a small group of judges. I will overrule their decision by EO."

Wed, 06/27/2012 - 08:30 | 2564502 Doug
Doug's picture

Stockton!  Send your bills to Angela Merkel.  German taxpayers will put it on the pile.

Wed, 06/27/2012 - 08:46 | 2564521 magpie
magpie's picture

Would you like Euro, or Deutschmark denominated EBT cards ?

Wed, 06/27/2012 - 09:00 | 2564547 jonan
jonan's picture

fuck you stockton, you stole my honda civic when i was a junior in HS...

Wed, 06/27/2012 - 09:13 | 2564578 slackrabbit
slackrabbit's picture

I offer to buy Stockton for $1, then I can run it with fear and intimidation like one of those villans in the cowboys movies....oh hell thats already happening!!!!

Guess I'll head out east then to the new frontier.....way east.

Wed, 06/27/2012 - 10:04 | 2564802 Iconoclast
Iconoclast's picture

Guys how the fukc is a place in such a mess got an average house price of $350k ?

Wed, 06/27/2012 - 13:19 | 2565487 Matt
Matt's picture

The properties are assessed by the city, which bases property taxes, its primary source of revenue, off the value of the house. Higher values equals higher taxes equals more money to spend on municipal workers and projects.

My parents recently bought a place for $60,000 less than assessed value. Shortly after, the assessor shows up to find out why it went for so much less than they had it assessed for. Not in Stockton, but I imagine the system works the same everywhere. 

Wed, 06/27/2012 - 12:25 | 2565302 William113
William113's picture

Wed, 06/27/2012 - 12:29 | 2565308 William113
William113's picture

I guess nobody has told Stockton that you can't give out loans an hire more Cops when you are BANKRUPTED.

http://www.stocktongov.com/

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