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City Of Compton Next On The Muni Bankruptcy Deck
Because once the dominoes start, they don't stop. Stockton, Mammoth, San Bernardino and now legendary rap and LA riots nexus - the City of Compton. Fear not: the ESM, and the German population whose retirement age will have to be in the quadruple digit range to fund a broke world, has got this, too, covered. Also, only squares don't make fun of Meredith Whitney for saying municipal America is insolvent, so please do.

From Reuters:
The City of Compton, a city of 93,000 people located on the outskirts of Los Angeles, must decide by Sept. 1 whether to seek bankruptcy, according to its two most senior financial officials.
Such a move would see it join a growing number of deficit-hobbled California cities that have used the filing to restructure onerous debt loads.
Compton, which has an accumulated $43 million deficit and has depleted what had been a $22 million reserve, will run out of cash to make its payroll on Sept. 1 at its current cash consumption rate, city comptroller Steven Ajobiewe told the city council during a July 17 meeting.
"I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days," said city treasurer Doug Sanders. "By then, the council will have a decision to make: don't pay the bonds, default on them, or have a serious talk about bankruptcy."
The city council adjourned at 11 pm without discussing a potential bankruptcy filing.
Compton Mayor Eric J. Perrodin also said he brought unspecified charges of "waste, fraud and abuse of public monies" to California officials, and had met with auditors from both the state and Los Angeles County.
He told the city council that at one point in its past the city had overspent legally set limits on certain programs by $17 million but would not elaborate.
Neither the state nor county has started an audit or investigation, city officials said.
A bankruptcy filing would follow one by San Bernardino, which on July 9 became the third California city this year to seek restructuring of its liabilities. Earlier, Stockton and Mammoth Lakes also said they would file.
Compton's problems escalated on July 13 when credit rating agency Standard & Poor's said it may cut Compton's BB long-term and underlying ratings for its lease revenue bonds.
One thing is certain: once Compton is completely free of law enforcement (which as it happens is unaffordable by broke cities), the local population will be calm, cool and collected as long as it takes.
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Mini Bankruptcies Bitchezz!!!
Meredith was wrong: You should never--NEVER--say when something will happen. Otherwise, she was spot on.
Surprisingly no 2011 CAFR - http://www.comptoncity.org/index.php/comprehensive-annual-financial-reports.htm
Straight Outta Compton... Into Default!
"brother's got it bad cause he's brown!"
"fuck the police and bond holders"
This is all Bush's fault, and the banks' fault. Everything would work fine if the banks would only lend more money and if the Fed would only help them a lil more.
Welcome to California.
Mere D. We got your back sistah. #@$% dem foos!
"With my mind on my money & my money on my mind"
~~~
http://www.youtube.com/watch?v=nXABIFuipBk
If only squares don't make fun of Meredith Whitney, I have to go with Huey Lewis and the News: It's hip to be square.
I think Compton is in Maxine Waters district? She better spread some Obama Bucks around the hood. Gots to keep the EBT cards clickin and the PO-lice on the streets.
http://www.youtube.com/watch?v=OrA9zj94NuU
"the city had overspent legally set limits on certain programs by $17 million"
tax munny=free munny=MO'munny
"California....knows how to party...In the city, the city of Compton
We keep it rockin! We keep it rockin!"
Mammoth Lake is a pretty nice place, I wonder why they are hanging out with this crowd. The others are pretty much the roll your windows up, lock your doors and keep driving sort of places.
They filed solely because they lost a $43million lawsuit. They didn't want to pay it.
Mammoth Lakes should get an astrick next to its name on the muni bk list. It became insolvent due to losing a legal case against a real estate developer. The City backed out of a deal, and the developer sued. Developer won a $43 million judgement. The City filed shortly after losing on appeal. Mammoth Lakes finances are otherwise in ok shape. They are using bankruptcy court to force developer to accept a long term payment plan.
Indeed! Nobody is immune here. The common thread is use of other peoples' money stolen at gunpoint. Compton, SanB, Hayward, and Stockton wanted a paramilitary police force. Mammoth needed a place to park G5's and Global Expresses.
A picture of Obama's redistribution czar.
They have a rotisserie at my supermarket, too.
Surely, some of those rich Compton rappers will step up to the plate and support their city financially.
My thoughts exactly..
Certainly the noble natives of Compton are hip enough to hop to and help their homeys over this hurdle.
ROFL! See also: Leon Spinks. They run through money like shit through a goose, if you're gonna borrow from a "rich" rapper you better do it today.
They tend to move away, although there have a been few who've done their part. Ice Cube even criticized Eazy about that a few decades ago.
http://www.youtube.com/watch?v=cd50N9AqpI4
You are a "G" for knowning that, thumbs up!
Killah Priest - Whut Part Of The Game? feat. Ras Kass - YouTube - http://youtu.be/4ty_GCJpJUM
"Most of y'all cats never bust no gats
And most of y'all cats neva sold no crack
And most of y'all cats better thank God for rap
Cause most of y'all left the hood....can't come back"
"My obligation, expose all ya funny bunnies
Rappers actin slash fudge packin for the money
'cause next week if the new fad was hip hop fags
You'll find a lot of these thug niggaz in drag, believe that"
Aploogies for the censored video. Find the raw song in the other videos.
Ice Cube is still the hardest damn mutha...
http://www.richclassifieds.net/wp-content/uploads/2012/05/557069.jpg
Too much television watchin' got me chasin' dreams
I'm an educated fool with money on my mind
Got my ten in my hand and a gleam in my eye
I'm a loc'ed out gangsta, set-trippin banger
And my homies is down, so don't arouse my anger, fool
Death ain't nuthin but a heart beat away
I'm livin life do-or-die-a, what can I say?
I'm twenty-three now, but will I live to see twenty-fow'?
The way things are goin' I don't know
Gangstas' Paradise, Coolio
yeah...I'm sure they'll contribute.
Dr. Drizzay and Snoop Doggy Dizzle in the hizzouse. Gonna bust some smoothass g-funk as we collapse on this shit west coast style. YEE!
This thread has not disappointed with a bunch of white-bred-former-NWA-lovin classists. It's only funny until this stuff starts playing in Peoria.
You haven't been down by the old stockyards lately, or down from the Heights! P-Taown ALL STARZ, G!
i fuckin' hate rap...
it's the soundtrack of a decadent society in collapse....it's the soundtrack of wall street
There is good rap that speaks to society and there is bad rap that remains bad. Like anything the masses gravitate to the mindless shit instead of the things that make them think because thinking aint cool.
They overspent? Isn't that the key to recovery? What's Obama been doing?
So much drama in the LBC
http://www.youtube.com/watch?v=-MrQtOoQRpc
Yeeeeeeeahhhh, BOYZZZZZZ!
how awesomely fitting!
I was thinking something more along the lines of this:
http://www.youtube.com/watch?v=FWOsbGP5Ox4
Was that a premonition?
Compton should snatch that baton, declare bankruptcy, and be the first 100% green community!
Going Thunderdome == Self-sufficient
"premonition?"
No. It's a promotion for the city.
Link thief.
lol, didn't see you post it until I scrolled down to the bottom.
yeah I like this version better than the one I posted below.
that is some ironic shit there...Tupac dead, now Compton
Not dead, just a zombie reanimated with a continuous infusion of electrons:
http://www.youtube.com/watch?v=TGbrFmPBV0Y
You know, like the banks.
I'd like to see that hologram doing this one:
http://www.youtube.com/watch?v=CSlsjXb2pn8
Well, I am glad somebody posted this video. Pretty soon everybody in California will be "moving like this" to someplace else:
http://www.youtube.com/watch?v=l7_B6Q5SSUw
Squeeky Fromm, Girl Reporter
Kalifornia Love baby! Tupac/Dr. Dre
http://www.youtube.com/watch?v=BKtMiCD_oqk
Wait 'till Compton spills over into Irvine and San Clemente....
Who got the camera???
http://www.youtube.com/watch?v=dyv9yq6WTc8
"Straight Outta Compton" by N.W.A. was a 1988 paean to this lovely municipality.
At least Ice Cube had sense enough to leave.
Burn that Mutha Down!!!
Remember, no one burns anything down alone, someone made the matches, someone distilled the gasoline, it also takes a country full of idiots to vote in the bamster.. Burn baby burn as there is no more money to rebuild it, good luck..
LMAO - Best comment of the week.
So that makes some 6 cities that have shown their cards (The Cali-4, Allentown, PA, one in TX - Shit I can't keep track). How about the main conduit between the states and the municipalities - THE COUNTIES. Over 3,000 of them in this here country.
One thing I know for sure is that I love watching the fire burn from the bottom up, but it would have been nice to let this thing burn from the top down. We had that chance, ut Bush/Obama/Giethner/Summers/Bernanke all saw fit Save the chosen one's asses at the expense of us all.
"heh heh, Fire's COOL!".
DR Head, Don't forget Jefferson County Alabama Sewer's.
don't forget Rhode Island all together too...tit's up bitchez.
Central Falls, RI
I remember that photo well...it was taken last Tuesday.
very hard to predict the level of fraud and manipulation used to kick the can on what is inevitable... give the criminals their due, they are masters of deception.
Wrong? Bullshit. Just because YOU are hearing about only now doesn't make her wrong. Every Municipal issuing entity in Cal that uses Calpers to handle their pension obligations is, how you say, fucked in the derriere. This fact alone will precipitate a wave of defaults and payout cuts.
Did you know the police chief of Mammoth Lakes was pulling in $250-300K annually ? Forget about the city council that fucked the city. That was absolutely "Bell, Ca." of him.
It's tough duty policing a city with over 8K people in an isolated ski resort locale. Violent snow bunnies can be extremely dangerous.
Absolutely correct. For a chilling example: http://www.youtube.com/watch?v=XcxKIJTb3Hg
Haha!
Meredith was too early in her call and was ripped apart for it. She will be right in the long run.
I got some tax-free California muni bonds for sale (I'll give you a really gooood deal, trust me).
Any takers?
Make a habit of calling people bitches all day and it's a matter of time before you become someone's bitch.
Hey! It's hip to be square!
Have you ever been to Compton? I have. That will absolutely NEVER happen.
Unfortunately, he forgot to add </sarcasm> to the end of the post.
Its hard out here for a pimp.
http://slangcity.com/songs/its_hard_out_here_for_a_pimp.htm
No Problem .. we can git som O' dat Obama Money
No Problem .. we can git som O' dat Obama Money
Anarchy, bitchez.
My Bitchezz are faster than yours!! LOL
Why don't both you bitches take a few hours to get a new schtick? It was funny the first 5 times or so, but like any gag, it wears thin and this one is far beyond thin.
You from Compton?
Why So Seriousss?
Angerhttp://www.youtube.com/watch?v=mMLKEE9wj1s
Bitchez Started Klokkin!http://www.youtube.com/watch?v=v9Lbd23XXEU
Chapter 9 will become as well known as page 27 in "The Godfather".
+1 from my pre-teens.... thanks for the memory
Californian Politicians for the most part are total frigging nutcakes.Esp in the southern end.
All this crap going on, and they want a new rail system, and raise even MORE taxes.
Well over 5 million have left the tax roles and state, and IMHO, these IDIOTS are the TRUE defininition of insanity.
Talk about lynchings.............badly needed.
They thru greed and liberalism, have destroyed totally, one of the used to be greatest states.
What was the 15th largest economy in the world is well on the way to a third world country.
This is an example of where most states are headed if this admin is not stopped.
Secession by sane states seems to be the only option at this point.
"..the local population will be calm, cool and collected as long as it takes."
CHimpOut - better familiarize your selves quickly with this term it's gonna get ugly soon
What's worse is the phrase 'White girl bleed a lot'. This is getting very disturbing:
http://www.wnd.com/2012/07/are-race-riots-not-news/
Black teenage mob assaulting white people is "mischevious youth".
White people fighting back is racially motivated hate crime perpetrated by the Klan. Eric Holder will personally make the arrest while Al Sharpton and Jesse Jackson chimp out about the honkey-ass-white-devils that are trying to commit racial genocide.
Let's not forget the katrina fiasco... where black people looking for sustenance were "dirty looters" whereas white people doing the same were "just trying to survive" or merely "scavenging"... it just depends on how much lead/prep time the reporters have to hide their natural biases... and/or purposefully start an issue.
He was just carrying his plasma TV to drier land. I'd have done the same. And it goes without saying that beer must always be rescued.
Let's light some shit on fire!!
Isn't the rebuild good for GDP?
Paul Krugman could argue it so. Argue it wrongly of course, but argue it he would. Breaking some windows and burning shit down would sure push aggregate demand, helping GDP, and then we will all be saved. Oh yeah, don't forget to borrow some money too, go shopping.
Amen brother. I just forwarded (lifted) your comment to Lib friend. (I love watching Lib's head's explode).
Lib said: Deficits don't cause Recessions; Recessions cause Deficits. That it's Bush's fault tax revenues have dropped.
I said: That's BS. Unions cause Deficits; and, it appears under Obama's watch that revenues have shrunk by $5 Trillion??
Krugman's destruction-equals-prosperity clip
http://www.youtube.com/watch?v=Tt1W0F0yObg&feature=related
If they rebuild. There are parts of southcentral that still have not been rebuilt from the last riots.
A very Keynesian solution. Then we'll have the Americorp come in and rebuild. Everyone wins!
califoenyanya...knows how to partay
From Oakland to Sacktown
The Bay Area and back down
Cali is where they put they mack down
http://www.youtube.com/watch?v=eDZ961xhNEo
You mean municipalities are defaulting ? I hadn't heard anything about that. I thought we had a booming economy according to the MSM.
btw doc, that bet of ours is looking quite favorable for me after bens assurances that qe3 will come...one day....
I'm reading things a different way, but that is what makes a market. I'm sure I'll be enjoying a turkey sandwich before election day.....
doc, things will have to turn ugly very fast for that to happen...remember, the stock market has bens fingerprints all over it....they are clearly working to keep it propped up...brian stack and co. have done an admirable job....there is almost no chance ben is willing to put himself on the chopping block anytime soon....he full well understands what happens if qe3 fails.......it will be absolute last resort.....figure well after elections............
There is a very important concept in play that is an unwritten rule in the world of finance.
A PROBLEM DELAYED IS A PROBLEM SOLVED. The finance folks have watched this prove out repeatedly in the 20th century. They have advised the politicians not to cut because time will solve the problem.
THAT IS OLD NORMAL THINKING. It only worked in a world of infinite oil and infinite growth. You cannot grow your way out of these can-kicked, worse-as-a-result problems when you have no growth.
The shock coming will kill a great many people.
One thing is certain: once Compton is completely free of law enforcement (which as it happens is unaffordable by broke cities), the local population will be calm, cool and collected as long as it takes...
wait, you mean the police force wont be willing to risk their lives in a fiery hellhole for 7.25 an hour?
Straight outta Compton, a crazy mother fucker named Meredith! She called the fucking Muni apocalypse!
Ahhhhh the munipolypse.
Trade mark pending. Need to rush over to Urban Dictionary to mark the munipolypse.
Makes me thinks of nipples and lips really, but we all know what the munipolypse is.
Meredith was hot in " Last action hero"
In the Cityyyyyyyyy...City of Compton
is reaal coool to the homeleeeessss!!!
Muni-bond index ETFs are totally shucking it off.
MUB keeps grinding higher and higher.
CXA California muni-bond ETF is at 52-week highs.
Same for New York NYF.
Reminds me of the silver market when it was approaching $50, nobody believed that downside was possible.
robo, why shouldnt it grind higher, after all, thanks to the federal reserve, the entire investing world is risk free......
Kind of funny that everybody's junking Robo when he's clearly indicating a blow off top in munis!
SPAM
What's your mom's number?
Robo, You left left out the LOL . Youre slipping
Does Compton have any taxpayers?
yeah, three. they are called muggees
That was worthy of iced tea spurting out of my nose. Good one.
Wall Street is completely free of law enforcement and they are doing great!
Bankers and businessmen sitting on municipal councils are too blame, but, guess who is going to get the blame?
bush? atms? japan?, not the democrat hoodlums that run cali thats for sure
"Yo Ren...Tell em where you from"
"City of Compton....Expletive, Expletive,etc ... repeat."
In the depression of the 30's people flocked to California. This depression is marked by people leaving!
I can't speak for all the states, but I think I can say we generally don't want the refugees...
They should leave the Union and start their own City-State utopia, before they ask for a bailout.
Wait til the Illinois cities start coming
Next stop, Chitown
Lito put the money down
and let it roll
Chicago will be ok as guns are illegal there and no one has any.
" Two boys – ages 13 and 14 – were among four killed, and at least 31 others were wounded in shootings in Chicago over the weekend."
http://www.youtube.com/watch?v=mwc4gCVXTcM&feature=related
Straight out of "lowcash"
What a mess ... Really sad. How does a municiple get that far in debt?
All the money went ... straight outta Compton!
Get it? Get it? GET IT?!?!?!?!?!?!?!?!?!
Do you know how much it costs to put 32" rims on every cop car?
I just love how the City fathers all seem to wait until they can't make payroll to start the discussion about what to do rather than attempting to do something maybe a wee bit before hand.
There's more leverage in an imminent crisis. Get everyone scared of doomsday, no time to ask questions or assign blame. Then force through "emergency" agenda. See Hank Paulson, 2008 bank bailouts.
If Compton legalized prostitution and drugs and taxed them they'd be the financially healthiest city in America. Hoes and Hopheads FTW.
Escape from LA
California Love
When the looting is over, white people will turn over America back to the Indians. Many whites are now living like homeless and stateless marauders--trotting around the globe seeking the next place to loot.
Texas is gonna leave this mess and go into the nation state business for it’s self. When that happens - and we all know it will - ownership of a Zero Hedge cap will accepted as proof of citizenship.
I have had my cap mfor almost a year. No one in my town of 18K has recognised it to me yet.
Sometimes I feel like I don;t have anything to say to anyone 'round here.
Just show up at Texas border with it and we'll let you in.
got mine for christmas 2 years ago... not a single person in my metro area (~150k) has recognized it... will keep in case I need to flee to texas.
I dream of this coming day. I have many Yankee co-workers whose entire families are moving here from NY and OH. Seems after they visit here they are shocked to see old American values and courtesy. The Woodlands has also been experiencing dramatic growth of wealthy Mexicans fleeing kidnapping problems of Mexico.
Where I am in upstate SC those people are also shocked to see old American values and courtesy, so of course they come here to buy a nice lakeside house and immediately try to turn it into where they left so that those last vestiges can be completely eradicated. They are hated deeply and passionately by the locals, and should things get ugly I expect some serious harshness.
Quite a few times in the last year or so I have heard mutters along the lines of "If everything falls apart, those people are gonna have to swim across the lake at gunpoint or die". If the trucks ever stop running the large amounts of meat, fruit, and vegetables grown around here certainly aren't going to be available to them at any price.
Same thing happens in Oregon. Kalifornians come up here and discover the "untouched beauty" and then move up here to "get away from the rat race" and then immediately upon arrival start trying to transform Oregon into a replica of the socialist hell they escaped.
I sit in traffic where there used top be none and imagine if all the cars around me with Kali plates simply vaporised... I would no longer be sitting in traffic.
Led... upstate here also. Howdy, neighbor. These ZH'ers are more plentiful than one would think!
N.C. native here living near you outside of Charlotte......I feel your pain.
I went to the woodlands... about every third car was a ferrari or lambo... kinda strange actually. However, I didn't get to see any american values or courtesy on display... at least not any more or less than most places.
What is the common denominator in these Chapter 9 bankruptcies? RACE. Black and brown towns are goin' down and dragging the country down with them. Those races are wholly incapable of self-rule.
That's kind of a mean spirited thing you blurted out. Mean spirited but true.
San Bernardino mayor and half city council are white. If any racial generalization is operative here, it's "brown and black" voter apathy. Although I think any notion of civic duty or participation is dead in this country, regardless of race. Ignorance of the political process and no citizen oversight. Politicians can loot the city coffers with impunity. Public corruption is endemic from the top down, and law enforcement takes its cues from the DOJ, which is of course asleep at the wheel.
Got to give you a:
Holy BeJeebus, Dat be Rayciss
(but of course true)
Mammoth Lakes is as lilly-white and prissy a place as you will find in all of Murika. They are obviously incapable of self-rule.
I'd challenge someone to find ANY well-run government these days.
Even da whites is just a buncha niggaz, nigga.
I'd challenge someone to find ANY well-run government these days
Texas as a state, and 90% of the cities in it.Sales tax revenues are up 15.3% YTD, and if you come to the DFW area, you will be hard pressed to have a clue their is a depression/recession going on.
Bout as close as you get.
Well run, compared to what?.
LOL, there is NO bar any more.