• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

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?

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Thu, 06/28/2012 - 20:44 | 2571745 Sabibaby
Sabibaby's picture

BANKRUPTCY - All the cool kids are doing it!

Thu, 06/28/2012 - 20:48 | 2571756 veyron
veyron's picture

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

Thu, 06/28/2012 - 21:05 | 2571813 FEDbuster
FEDbuster's picture

Kalifornians are early adopters. 

Thu, 06/28/2012 - 22:21 | 2571829 Bay of Pigs
Bay of Pigs's picture

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

Who's next?

Thu, 06/28/2012 - 23:05 | 2572134 AldousHuxley
AldousHuxley's picture






Fri, 06/29/2012 - 01:02 | 2572342 Teamtc321
Teamtc321's picture

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

Fri, 06/29/2012 - 03:02 | 2572463 zhandax
zhandax's picture


No, but starve is twice as effective.

Fri, 06/29/2012 - 06:12 | 2572551 GCT
GCT's picture

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

Fri, 06/29/2012 - 06:17 | 2572552 GCT
GCT's picture

Double post Sorry

Thu, 06/28/2012 - 23:38 | 2572234 Thomas
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.

Fri, 06/29/2012 - 02:11 | 2572328 The Big Ching-aso
The Big Ching-aso's picture



Stockton.   Where pension rubber hit the road and exploded.

Fri, 06/29/2012 - 06:59 | 2572572 Peter Pan
Peter Pan's picture

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


Thu, 06/28/2012 - 21:12 | 2571838 fightthepower
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!

Thu, 06/28/2012 - 20:51 | 2571767 bigdumbnugly
bigdumbnugly's picture

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

Thu, 06/28/2012 - 22:41 | 2572084 Never One Roach
Never One Roach's picture

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

Thu, 06/28/2012 - 23:09 | 2572149 AldousHuxley
AldousHuxley's picture

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


looks like mexicans have accepted american culture of spending.

Fri, 06/29/2012 - 00:06 | 2572277 natty light
natty light's picture

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

Thu, 06/28/2012 - 21:03 | 2571810 vast-dom
vast-dom's picture

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

Thu, 06/28/2012 - 22:01 | 2571984 fuu
fuu's picture

Green shoots, hopium, and Brian Sack.

Fri, 06/29/2012 - 03:07 | 2572466 zhandax
zhandax's picture

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

Thu, 06/28/2012 - 22:29 | 2572058 Buck Johnson
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.

Thu, 06/28/2012 - 20:45 | 2571746 Xibalba
Xibalba's picture


Thu, 06/28/2012 - 20:46 | 2571748 Yen Cross
Yen Cross's picture

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

Thu, 06/28/2012 - 21:11 | 2571832 knukles
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....

Thu, 06/28/2012 - 21:17 | 2571858 Yen Cross
Yen Cross's picture

  Moonbeam part duex' knows knukles

Thu, 06/28/2012 - 21:27 | 2571887 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

Thu, 06/28/2012 - 21:31 | 2571898 Ricky Bobby
Ricky Bobby's picture

Dude you need to find some new friends.

Thu, 06/28/2012 - 21:50 | 2571956 Yen Cross
Yen Cross's picture

 mmmmm Ricky Bobby

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

Thu, 06/28/2012 - 21:46 | 2571944 A Nanny Moose
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.

Thu, 06/28/2012 - 23:38 | 2572233 FEDbuster
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!

Thu, 06/28/2012 - 21:58 | 2571973 Yen Cross
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!

Fri, 06/29/2012 - 08:32 | 2572742 GoldenTool
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."

Thu, 06/28/2012 - 20:47 | 2571753 mvsjcl
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!

Thu, 06/28/2012 - 20:55 | 2571783 pods
pods's picture

It starts with BA and ends with NKS.

Thu, 06/28/2012 - 20:59 | 2571792 mvsjcl
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?

Thu, 06/28/2012 - 21:15 | 2571845 knukles
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

Thu, 06/28/2012 - 21:48 | 2571948 FeralSerf
FeralSerf's picture

Jooze, more often than not.

Fri, 06/29/2012 - 03:16 | 2572470 zhandax
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.

Fri, 06/29/2012 - 07:45 | 2572648 jerry_theking_lawler
jerry_theking_lawler's picture

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

Fri, 06/29/2012 - 08:33 | 2572738 FEDbuster
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.

Thu, 06/28/2012 - 21:16 | 2571851 CaptainObvious
CaptainObvious's picture

The top fifteen executives of each bank.

Thu, 06/28/2012 - 21:49 | 2571951 Landrew
Landrew's picture

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

Fri, 06/29/2012 - 01:26 | 2572359 GlassSteagall
GlassSteagall's picture

Sorry ... money's gone in 60 seconds

Thu, 06/28/2012 - 21:07 | 2571818 Yen Cross
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?

Thu, 06/28/2012 - 22:05 | 2571993 fuu
fuu's picture

Will there be basket weaving lessons?

Thu, 06/28/2012 - 22:11 | 2572009 Yen Cross
Yen Cross's picture

fuu go pick on someone else. 

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

Thu, 06/28/2012 - 23:04 | 2572130 fuu
fuu's picture

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

Thu, 06/28/2012 - 21:29 | 2571890 dolph9
dolph9's picture

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

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