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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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Please keep publicizing your success... guess what it will cause? All the refugees will be heading to your town... locusts to swarm your crops and production. Best of luck, it's coming. [when you can go from tard as Cali to many southern states and have a cost of living that is literally 25% of what you're used to... and at 50% of your former salary... it doesn't take long to make a believer].
In this case, success breeds leaches... which breed failure. I think the economic term is normalization...
Any holdouts will be temporary... although, it might take decades for the economics/math to catch up.
Depends on the line of work. A friend of mine does interior construction in Houston, his life's been sucking hard for a good long while.
How's that light-rail in Austin coming along? And have y'all managed to replace your biology textbooks with the Bible yet?
There's a good use for government.
(THAT SAID, hey: if you're happy there, by all means I'm sure you're getting the gummit you deserve. I don't like to visit TX, and I'm sure you're not a frequent tourist to NYC, either. It's a big landmass, and there's room for us both.)
I think youve just committed a thoughtcrime....
you luxurious criminal you
Sell it all to China.
Good resource is this site:
http://www.statebudgetsolutions.org/the_williams_report/detail/state-bud...
Specifically the "States' Running Deficits" section:
California: $16 Billion
Illinois: $8 Billion
Pennsylvania: $500 Million
Louisiana: $251 Million
Rhode Island: $120 Million
Connecticut: $97.5 Million
So, looks like the dominoes are going to be CA, IL, PA and then the 'fun' begins...
Compton is simply joining the new normal.
Not necessarily bankrupt, but municipalities with vastly scaled down services to match their revenue stream. Its sad that in order to get there the city gets racked over by bankruptcy attorney fees.
Once their thru the wringer, former officials from Stockton, San Bernandino, and the rest can outsource themselves to other cities not yet in the chute to show how its done.
And have a nice day. On and on and on and on. Can't wait for Mayor Bloomberg to speak to the people in a few months. Ahem, we are a little short of cash!
$2 million is a lot of tickets to write in 10 days.
Formerly black Compton is now 66.7% Hispanic and it's public school system is 75% Hispanic. However, not one Hispanic person has been elected to the City Council. The articles I read did not explain why. Hispanics have organized to change voting dictrict rules so that Hispanics can be better represented.
Black or brown, bankrupt is bankrupt.
Jewish or Semitic: Wall Street is corrupt and bloodsucker is bloodsucker and Vampire Squid is Vampire Squid.
There I fixed it for you.
Maybe they can't vote because they're not legally in the country.
Well they already contract out to the LA County Sherrif for police ( although some local officials have made inclings of a desire to have their own force again). I am sure they will slash their 84 firemen and install LA County Fire contracted out of course.
Fun Fact:
The Compton L.A. County Courthouse has gaps between the walls and the windows so that when the wind blows you hear it squeezing through. A fine example of corrupt union labor no doubt. Its also coincidentally the tallest building in Compton and can be seen for miles before you get there.
I'll bet they over hired / and over compensated during the "boom" years. Much like Congress I am sure their city council can't actually do any math. If law school required a section on basic math, either a new section of the LSAT or a supplement of GRE math for admittance, we would all be better governed. I got called a "math major" by a professor (which I absolutely wasn't) for knowing what the numerator and demoninator in a fraction were discussing a supreme court takings case.
If Whitney Tilson married Meredith Whitney, would he be Whitney Whitney..??
No .... Men don't usually take their wife's last name.
I am trying to imagine what Mammoth Lakes did versus Compton...slightly different demographic....goes to show ya...it can happen anywhere's...
NO. Mammoth was about an airport that could not be built to handle large commercial airliners- completely different from the skum factor affecting the brown and chocolate cities.
I am not trying to make any racial comparisons, just that we are talking very different types of towns with the same problem.
ditto re racial comparisons.
Brown and choclat cities?
Are you from the 14th century?
You demonstrate how dim you are when you seek to lay blame for the 'white men in suits' problem at the door of others.
Just quoting that Nigger Nagin (who is facing indictment for his TNB)
(Used the word just to piss you off)
Now, tell me why only white nations are responsible for every problem from Hati to Liberia?
Mammoth's BK is actually due to a huge mulit million dollar judgment over some development agreement with a developer for something near their airport. Its a different kind of mismanagement. Instead of just foolishly overspending on employees and their defined benefit plans they signed a really stupid deal.
Apparently Wall Street is not the only one Cities need to be suspicious of in their dealings.
its NUTHING but a B thing baby!!
OR is it nothing bug a G thing baby!! = says snoop doggy dog who is from COMPTON !!
B thing = BANKRUPTCY...
now i remember meredith whitney 2 years ago calling lots of MUNI BANKRUPTCIES....and the stupid bloomberg reporters were saying that she was a stupid doomer...aaaah, the "mainstream media" ROFLMAO !!!!!!!!
Meridith Whitney is simply one of the few that chose to tell the truth. She is like Robert Shiller. There is nothing unusual about what they say. They just tell the truth, the other 'sheep' are still in the game, like Germans caught up in the NAZI firestorm, they just want to be able to collect their pensions.
Lasy year I was driving the 99 between Fresno and Bakersfield and there was a mysterious billoard that read: BANKRUPTCY It's still possible.
And lo and behold, it is indeed.
One nice thing about LA is it's never occurred to the Comptonites to walk a few miles up Alameda BEFORE setting fire to shit.
Why, they don't own Campton either! Guess who is the slum landlord?
The ladies who sing the song?
I meant: it's a nice thing for the rich folks in Hollywood who never get to see pissed-off black folk up close.
Oh...in my town they are the darkies, coloreds, or brownies. And you are dark skinned and walking along the street at night--and not headed to the bus stop, you will meet Officer Mike. He is always happy to give the less advantaged a ride. They will thank officer Mike for his government sponsored help when they invent the next APPL.
Of course, it is a real bitch for the kids of that Indian surgeon that just moved into town. The cops don't quite know what to make them.
Oh...in my town they are the darkies, coloreds, or brownies. And you are dark skinned and walking along the street at night--and not headed to the bus stop, you will meet Officer Mike. He is always happy to give the less advantaged a ride. They will thank officer Mike for his government sponsored help when they invent the next APPL.
Of course, it is a real bitch for the kids of that Indian surgeon that just moved into town. The cops don't quite know what to make them.
Compton may have a police department, but that doesn't mean they actually leave the station.
peak debt!
I think CNBC should each take turns giving Meredith Whitney a pedicure on air. That would be entertainment.
WORD to the brotherz
We're broke as muthafuckas
Yeah Hoooomes - we got no homes!
We don't need no water let the mother fucker burn - burn mother fucker - burn!
No surprise, I think it's Maxine Watters district. Compton, CA is the gangland and the murder of the USSA.
I think Compton is where the city spent $10 million to help "rehabilitate" old gang members with a program that gave them the money to buy street weapons to help get them off the street. But the "former" gang members turned them into fully automatic weapons and then resold them for a hefty profit out the back door.
Are you sure that was LA gang members? - that sounds like a classic US military trick to me.
Sell Saddam weapons
Accuse Saddam of having weapons (that you sold him)
Attack Saddam to 'stop the weapons'
Sell weapons to his neighbours so they feel safer
Attack his neighbours as they have weapons
Rinse and repeat - and then wonder why the world HATES American foreign policy they are prepared to blow themselves up just to take a few Americans down with them.
There is always the Jeremiah Johnson method.. Head due west ( Or east in this case). Turn left at the Rocky Mountians. Bear claw is waiting.
http://www.youtube.com/watch?v=95ND_fwX2fM
Da word comes down
from that Meredith Whitney Bitch
that Ctown's belly up
outta papehs an shit.
STRAIGHT OUTTA COMPTON
A crazy mother fucker called 'Debt cube' from a crazy mother called "CDO Squared"
I expect the people of Compton will hardly notice the difference.
however the rest of LA will notice as the resourceful 'comptonians' willl come out of their lair and start jacking everyone in LA once they realise their 'hush money' (welfare) has been cut due to bankruptcy.
Ever seen a compton gang member kick off because he can't get on with his day because the school is closed and he can't drop his kid off?
...you will...you will.
LA riots soon come.
No worries, Mon. All those "alien invetors" who are grabbing all those empty houses will gladly step up and buy Compton DD+ Munis.
See.
For those of you who are confused about the image at the top of this story, it shows a bank clerk tossing bank documents into the fire.
I love the ending '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."
This will be fun to watch. Kind of like watching all of these flash mob videos except for two exceptions: 1. no fear of getting stopped and 2. all ages will participate in this fun. And to think this is just the beginning of what is going to happen in CA (and then the rest of the country).
yep california is your precedent, watch and learn, its the playbook....
Feel free to vacation in Camden NJ if you are curious on how this plays out
DETROIT 2.0......
Long and strong Catepillar....
NWA now means Niggas without assets.
dood, that is solid (nugget style) gold. +100
Soon they'll they stop reporting on the cannibal cities like they don't exist anymore... Just wall them off with NATO troops. Fire the cops too
It's time to just start razing cities to the ground
I think when everyone finally sees she was totally right, they should replace CNBC with an updated version of Hollywood Squares and put her in the center box.
The Titanic, errrr USA, has it's ass end in the air, far up out of the water, and is about to break in two... and people still don't believe me when I say Obama, Brenanke, and thousands of other top traitors will be in chains before s-election time... http://tinyurl.com/cd5cyjo/
The big one will be when Los Angeles contemplates bankruptcy. Right now the former mayor, Richard Riordan, figures they have until 2014. At that point either they have massive layoffs and pension reforms or they file for bankruptcy as well.
Can't Dr. Dre and Ice Cube just bail them out?
Nice photo, I'll caption it "Obama voter still life".
I noticed the Compton Controller has a Nigerian surname, perhaps he can secure some foreign govt funding.
I couldn't help thinking of Krugman. The only thing these Cali citie are missing is that they should be spending more, more, more. Then - the Obama and Krugman Nobel prizes wouldn't be considered the sickest jokes ever put upon our society.
Who would have credited the Swedes with a sense of humor?
Obama - Noble Peace Prize - Sez Otto - "You think that dumb mo-fo will see that we wrote "Nobel Peace Pipe" on it? Viktor -"No Otto - ve vill be ze only ones to laugh at that one."
Krugman - Nobel Prize in Economics - William - "Elias, should we explain to them that they cannot keep spending money they don't have because debt does actually matter." Elias, "No, Will, they'll figure it out when nobody will lend them even one of their own dimes. Again - we will laff then. We are 100% energy independent, and we have the hot chicks and the hot tubs and ve are all 3 metres tall and live to be 100 years old. I think we will have the next 70 years to call them all our BITCHEZ, YAH?"
YAH!
"Oh the lonely people, the empty rooms
Pointless violence, silent tombs
Could it be that we shall be together again
Sheets of double glazing help to keep outside the night
Only foreign city sirens can cut through
Nylon sheets and blankets help to minimise the cold
But they can't keep out the chilling sounds
Will the nightmare soon give way to dreaming
That she is here with me
She's in the glow of the night"
~Genesis, "Domino"
I thought that was appropriate, considering which state is under discussion. ;)
Vallejo
Stockton
Mammoth Lakes
San Bernardino
Compton
What's the next domino to fall? LA? San Fran? Dare I say it...Sacramento, where all of this bullshit should come home to roost?
This fellow has presumably built a paper trail at multiple secure locations...