California Is Not Spain, Uganda, Or Greece; But Stockton Sure Is: Largest US City Bankruptcy Is Now Official

Tyler Durden's picture

The longest foreplay, well except what they have going on over in Europe these days, is now over:


Let's see: this week we have had official insolvency filings from Spain's banks, Cyprus, now Stockton, and rumors that Slovenia is next. It also appears that Spain and Italy do not want to be "fake" bailed out unless they are "for real" bailed out. Things are certainly picking up speed.

What next: Stoxit? And what is the Bloomberg text symbol for the Confederate dollar?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sabibaby's picture

BANKRUPTCY - All the cool kids are doing it!

veyron's picture

I'm told the third bankruptcy is free ...

FEDbuster's picture

Kalifornians are early adopters. 

Bay of Pigs's picture

Finally some good news out of the great state of Kalifornia...

Who's next?

AldousHuxley's picture






Teamtc321's picture

Vote Obama in 2012!!! You fucking idiot's..................

zhandax's picture


No, but starve is twice as effective.

GCT's picture

Like your vote really matters.  Keep on drinking your hopium and head back to huffpo! 

Thomas's picture

The good news is that we are finally starting to deal with the problem. The bad news is that this is probably 0.1% of the municipal problem.

The Big Ching-aso's picture



Stockton.   Where pension rubber hit the road and exploded.

Peter Pan's picture

I think it's time for Zorro to make a comeback.


fightthepower's picture

Great! Many more cities, counties, states and especially after Roberts' traitorous act today eventually the USA to come. This evil system will end.

I can't wait!

bigdumbnugly's picture

yep.  better grab a seat before the bus is full.

Never One Roach's picture

"Just walk away"....over 1 million house owners have.

AldousHuxley's picture

but the illegal aliens still driving Escalades from HELO cashouts.....


looks like mexicans have accepted american culture of spending.

natty light's picture

Better to be one of the first while there is still some solvency out there.

vast-dom's picture

Amazing! Pray tell anyone someone how the fuck the SP is NOT UNDER 800??????????

fuu's picture

Green shoots, hopium, and Brian Sack.

zhandax's picture

Sack's in tall clover now.  There is a new sheriff in town....

Buck Johnson's picture

Trust me Stockton's not the only city or county, there are hundreds more lining up to figure out what to do.

Yen Cross's picture

 That place smells like a giant rotting " Brussel Sprout" anyways. Let the failing Levees reclaim it.

knukles's picture

Nobody from the Great California Republic is gonna know to what you allude.

And last told, they in Stockton are actively discussing curtailing current monthly pension and health care checks to retirees in order to have fiunds for necessary services.

Poor CA gubamint retirees.
My ass....

Yen Cross's picture

  Moonbeam part duex' knows knukles

knukles's picture

And the most interesting twisted sort of the whole miasma is here's Moonbeam, a solid friend of organized labor, etc., the one who's actually initiated the discussions about pensions...
Wouldn't of thought he'd have been the guy to touch the third rail, so to speak, but he has.
Good on him for that.
Topic need serious breaching in the Great People's Republic of California.

My yber-liberal CA gov't employee golf buds are angry as all hell at me because several years ago I was telling them that the pension, health benefits deals were coming unglued and were gonna ultimately get cut.

They treat me as though my forecast was the event initiating the prohibited discussions.

Some folks love to live, revel in a disassociative disorder

Ricky Bobby's picture

Dude you need to find some new friends.

Yen Cross's picture

 mmmmm Ricky Bobby

                                              Knuckles knows his talk on this topic.  I'll leave it at that.                            

A Nanny Moose's picture

My yber-liberal CA gov't employee golf buds are angry as all hell at me because several years ago I was telling them that the pension, health benefits deals were coming unglued and were gonna ultimately get cut.

Been telling my mother, a retiree of the education system this same thing. She look at me like I am building a fucking ark or some crazy shit like that.

FEDbuster's picture

The Ark may not be a bad idea (especially if you are on the West Coast).

The .gov and teacher retirees should sit down and have a beer with a couple of retired airline pilots I know.  Talk about pension haircuts!

Yen Cross's picture

 Nein. Neither Moonbeam Sr. or Jr. were ever in favor of ( unrestricted labor).   They allowed our borders to be over-run in the 80's and figured the costs would be less than the actual costs of restricted labor.

   OXYMORNIC politics at it's best!

GoldenTool's picture

Unfortunatly, this is the easiest answer to the boomer problem, we still have about 5 more years to go.  Give them what they want so they will retire, then crawfish.  Coming soon worldwide near you...  That solves the easy question.  The harder question is solving eroi.


"Do unto others."

mvsjcl's picture

Quick question: If everyone's broke, municipalities, counties, states, nations, banks, etc..., THEN WHO HAS ALL THE FUCKING MONEY? Where'd all the bailouts go? SOMEBODY must have it!

pods's picture

It starts with BA and ends with NKS.

mvsjcl's picture

But they all claim to be broke, no collateral, stinky balance sheets, need more bail-outs, must be broke. Again, WHO HAS THE MONEY?

knukles's picture

As in people who are held harmless for their actions as employees of corporations, banks, etc.

And where it's all ultimately siphoned off to are the fabulous banking families and their political enablers.

As but one example, can you say City of London?
I thought you could.

Go figure

FeralSerf's picture

Jooze, more often than not.

zhandax's picture

THEN WHO HAS ALL THE FUCKING MONEY? Where'd all the bailouts go?

It was all used to deodorize a cesspool of non-performing derivative securities.

jerry_theking_lawler's picture

bankers/politicians spent it all on jet fuel, coke, and hookers.....

FEDbuster's picture

Banksters are middlemen to funnel the new trillions created by the FED to the politicians.  They in turn, give it back to banks, friends and politicians whom can't print money.  Plus, they pay off the unemployed and underemployed in a blatant attempt to buy votes and keep the herd calm.  Corporations that have been lucky enough to get a little seem to be fattening up their "rainy day" funds, so they have a chance of surviving the next shit storm.

CaptainObvious's picture

The top fifteen executives of each bank.

Landrew's picture

It's called fractional reserve banking. The down side loss of capital is just as leveraged as the upside.

GlassSteagall's picture

Sorry ... money's gone in 60 seconds

Yen Cross's picture

 It (real property), goes into receivership. Then china builds a( green /oxcart) road thru it. Walaa land improvement has, tree hugger approval.

   Then we start a "Hut Owners" association.  Any Questions?

fuu's picture

Will there be basket weaving lessons?

Yen Cross's picture

fuu go pick on someone else. 

                                                            I'm waiting for the outcome of the European "Non Summit"<>

fuu's picture

Just saying that if we are going to be in huts then knowing how to weave might be important.

dolph9's picture

Don't ask too many questions, goy.  Just keep on going to church and join the military.