City Of Compton Next On The Muni Bankruptcy Deck

Tyler Durden's picture




 

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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Wed, 07/18/2012 - 10:42 | 2627988 LULZBank
LULZBank's picture

Mini Bankruptcies Bitchezz!!!

Wed, 07/18/2012 - 10:43 | 2627995 Thomas
Thomas's picture

Meredith was wrong: You should never--NEVER--say when something will happen. Otherwise, she was spot on.

Wed, 07/18/2012 - 10:47 | 2628018 Rahm
Rahm's picture

Straight Outta Compton... Into Default!

Wed, 07/18/2012 - 11:00 | 2628101 orangedrinkandchips
orangedrinkandchips's picture

"brother's got it bad cause he's brown!"

 

"fuck the police and bond holders"

Wed, 07/18/2012 - 11:08 | 2628139 Nothing To See Here
Nothing To See Here's picture

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.

Wed, 07/18/2012 - 11:19 | 2628191 strannick
strannick's picture

Mere D. We got your back sistah. #@$% dem foos!

Wed, 07/18/2012 - 13:15 | 2628816 francis_sawyer
francis_sawyer's picture

 "With my mind on my money & my money on my mind"

~~~

http://www.youtube.com/watch?v=nXABIFuipBk

Wed, 07/18/2012 - 13:28 | 2628882 HoofHearted
HoofHearted's picture

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.

Wed, 07/18/2012 - 19:19 | 2630093 FEDbuster
FEDbuster's picture

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

Wed, 07/18/2012 - 15:56 | 2629597 Bananamerican
Bananamerican's picture

"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!"

Wed, 07/18/2012 - 11:25 | 2628216 DeadFred
DeadFred's picture

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.

Wed, 07/18/2012 - 11:58 | 2628369 N. B. Forrest
N. B. Forrest's picture

They filed solely because they lost a $43million lawsuit.  They didn't want to pay it. 

Wed, 07/18/2012 - 12:03 | 2628401 Quantum Nucleonics
Quantum Nucleonics's picture

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.

Wed, 07/18/2012 - 12:58 | 2628739 A Nanny Moose
A Nanny Moose's picture

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.

Wed, 07/18/2012 - 11:26 | 2628223 Taterboy
Taterboy's picture

A picture of Obama's redistribution czar.

Wed, 07/18/2012 - 11:32 | 2628242 Manthong
Manthong's picture

They have a rotisserie at my supermarket, too.

Wed, 07/18/2012 - 11:01 | 2628107 malikai
malikai's picture

Surely, some of those rich Compton rappers will step up to the plate and support their city financially.

Wed, 07/18/2012 - 11:19 | 2628181 Manthong
Manthong's picture

My thoughts exactly..

Certainly the noble natives of Compton are hip enough to hop to and help their homeys over this hurdle.

Wed, 07/18/2012 - 11:19 | 2628187 LFMayor
LFMayor's picture

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.

Wed, 07/18/2012 - 11:41 | 2628276 blunderdog
blunderdog's picture

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

Wed, 07/18/2012 - 12:04 | 2628413 SemperFord
SemperFord's picture

You are a "G" for knowning that, thumbs up!

Wed, 07/18/2012 - 14:57 | 2629382 KK Tipton
KK Tipton's picture

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.

Wed, 07/18/2012 - 21:16 | 2630381 ForTheWorld
ForTheWorld's picture

Ice Cube is still the hardest damn mutha...

http://www.richclassifieds.net/wp-content/uploads/2012/05/557069.jpg

Wed, 07/18/2012 - 14:05 | 2629142 LongSoupLine
LongSoupLine's picture

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.

Wed, 07/18/2012 - 11:12 | 2628152 Skateboarder
Skateboarder's picture

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!

Wed, 07/18/2012 - 11:55 | 2628354 killallthefiat
killallthefiat's picture

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.

Wed, 07/18/2012 - 12:16 | 2628490 LFMayor
LFMayor's picture

You haven't been down by the old stockyards lately, or down from the Heights!   P-Taown ALL STARZ, G!

Wed, 07/18/2012 - 16:01 | 2629684 Bananamerican
Bananamerican's picture

i fuckin' hate rap...

it's the soundtrack of a decadent society in collapse....it's the soundtrack of wall street

Wed, 07/18/2012 - 18:34 | 2630027 Temporalist
Temporalist's picture

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.

Wed, 07/18/2012 - 12:12 | 2628462 Chuck Walla
Chuck Walla's picture

They overspent?  Isn't that the key to recovery? What's Obama been doing?

Wed, 07/18/2012 - 17:20 | 2629899 natty light
natty light's picture

So much drama in the LBC

Wed, 07/18/2012 - 10:48 | 2628029 Roy Bush
Roy Bush's picture

http://www.youtube.com/watch?v=-MrQtOoQRpc

 

Yeeeeeeeahhhh, BOYZZZZZZ!

Wed, 07/18/2012 - 10:55 | 2628072 Jason T
Jason T's picture

how awesomely fitting!

Wed, 07/18/2012 - 11:13 | 2628161 tmosley
tmosley's picture

I was thinking something more along the lines of this:

http://www.youtube.com/watch?v=FWOsbGP5Ox4

Wed, 07/18/2012 - 11:33 | 2628240 poor fella
poor fella's picture

Was that a premonition?

Compton should snatch that baton, declare bankruptcy, and be the first 100% green community!

Going Thunderdome == Self-sufficient

Wed, 07/18/2012 - 12:05 | 2628420 Arnold Ziffel
Arnold Ziffel's picture

"premonition?"

No. It's a promotion for the city.

Wed, 07/18/2012 - 11:38 | 2628264 fuu
fuu's picture

Link thief.

Wed, 07/18/2012 - 12:13 | 2628463 tmosley
tmosley's picture

lol, didn't see you post it until I scrolled down to the bottom.

Wed, 07/18/2012 - 12:04 | 2628411 Disenchanted
Disenchanted's picture

 

 

 

yeah I like this version better than the one I posted below.

 

City of Compton

we keep it rockin...

 

that is some ironic shit there...Tupac dead, now Compton

Wed, 07/18/2012 - 12:15 | 2628479 tmosley
tmosley's picture

Not dead, just a zombie reanimated with a continuous infusion of electrons:

http://www.youtube.com/watch?v=TGbrFmPBV0Y

You know, like the banks.

Wed, 07/18/2012 - 12:30 | 2628568 Disenchanted
Disenchanted's picture

 

 

I'd like to see that hologram doing this one:

 

http://www.youtube.com/watch?v=CSlsjXb2pn8

Wed, 07/18/2012 - 14:06 | 2629147 SqueekyFromm
SqueekyFromm's picture

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

Wed, 07/18/2012 - 11:54 | 2628348 Disenchanted
Disenchanted's picture

 

 

 

Kalifornia Love baby! Tupac/Dr. Dre

http://www.youtube.com/watch?v=BKtMiCD_oqk

 

Let me welcome you to the wild wild west

a State that's untouchablle like Elliot Ness..

Wed, 07/18/2012 - 12:03 | 2628405 Arnold Ziffel
Arnold Ziffel's picture

Wait 'till Compton spills over into Irvine and San Clemente....

Wed, 07/18/2012 - 12:12 | 2628464 SemperFord
Wed, 07/18/2012 - 10:49 | 2628037 Tippoo Sultan
Tippoo Sultan's picture

"Straight Outta Compton" by N.W.A. was a 1988 paean to this lovely municipality.

At least Ice Cube had sense enough to leave.

Wed, 07/18/2012 - 11:00 | 2628102 Cortez the Killer
Cortez the Killer's picture

Burn that Mutha Down!!!

Wed, 07/18/2012 - 11:16 | 2628149 Calmyourself
Calmyourself's picture

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..

Wed, 07/18/2012 - 13:09 | 2628785 Ricky Bobby
Ricky Bobby's picture

LMAO - Best comment of the week.

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