Posted on 04/01/2013 12:46:47 PM PDT by Zakeet
A mere nine months after we first discussed the inevitability of Stockton, CA.'s bankruptcy, a judge has ordered today that the city will now become the most populous in the US to be declared bankrupt.
*STOCKTON CREDITORS DIDN'T NEGOTIATE IN GOOD FAITH, JUDGE SAYS
Creditors are pushing to get the city out of bankruptcy but the judge states that "by any measure" the city was insolvent. So, in summary, yeah, it was broke years ago, it still is broke - despite the best efforts by the Central Planning Reserve to reflate the same housing bubble that was the primary reason for the city's insolvency in the first place. Only this time, it's official!
Via Reuters:
Stockton, California, was ruled eligible for bankruptcy protection under Chapter 9 of the U.S. bankruptcy code, a U.S. judged said on Monday, turning aside creditors' arguments that the city was not truly insolvent when it sought protection last year and had improperly failed to seek concessions.In a case that has been widely watched by the $3.7 trillion municipal bond market, U.S. Bankruptcy Judge Christopher Klein said Stockton had established during last week's three-day trial that it had met requirements to be found eligible to proceed with its municipal bankruptcy case.
Officials in the city of nearly 300,000, the largest city so far to have filed for municipal bankruptcy, will now be allowed to start drafting a so-called plan of adjustment for the city's debts.
The case is expected to pit municipal bondholders against the California Public Employee Retirement System, which manages pensions for Stockton and many other California governments.
Just the first of many to come...
Why would not all of California follow? I know that states are not allowed to default, but if they have no money.....are they preparing for the US federal government to bail out the first of the states to demand a bailout?
Was Cypris a dry run to see which glitches to be expected? What remedy to impose?...And is this the beginning of us being made aware of what the Feds are planning at a national scale? And if there are pockets of resistance of appropriating all banked money, 1.75 billion rounds of 9 mm or 10 mm ammunition will bring us back into line. The connections seem more than tenuous. Perhaps my imagination is getting out of hand.
Oh I have to steal your post:)
Wait! This is gotta be another April Fool’s Joke, cause Paul Krugman just wrote an article praising conditions in Kalifornia!
And this will guarantee three landing zones/firebases (CA, IL, NY) for the fedgov when CWII breaks out. Strategic placement too.
Where do you think all the federal dollars have been flowing the last few years? To the states to bolster all the union pensions.
NYC is going to become the next lost city of Detroit.
Doomberg killed NYC.
” They’ll have to rape their public employee pensioners at some point.”
Your post implies stealing from retired government trough feeders is wrong.
Considering that the large majority of those trough feeders were de facto commies and needless drone, specific justification for your implication is hereby respectfully requested.
Surf’s up!
“If Stockton is allowed to cancel the Union Contracts and revoke the pensions this is gonna get real ugly real quick! “
I think it would be amusing to watch the parasites rebel against the parasite feeders. Elections have consequences.
THIS IS FANTASTIC.
Finally, a defense for California taxpayers, who have been powerless against STINKIN’ PUBLIC EMPLOYEE UNIONS my entire voting, taxpaying lifetime in this state.
Retired fifty-year-old cops and firemen? The deals you ‘negotiated’ with those city officials were naked bribery. You threw campaign cash at them for giant pensions. Well, bribery is illegal. So all those deals should be abrogated. And I don’t care if it has to happen in bankruptcy court. A court is a court — we’ll take justice where we find it.
WE’RE NOT PAYING. Start looking for a job.
“Central Planning Reserve”? I think “central planning”, a proven socialist failure, is at the root of the problem.
“Creditors will come back, they usually do.
I wish what you are saying would be true. People are idiots to buy CA bonds, but this won’t stop them - though they may ask for a better return. “
What are you, some kind of nutcase? Creditors don’t USUALLY come back to a deadbeat, they ALWAYS come back to a deadbeat (LOL).
Doesn’t California Public Employee Retirement System own California munis?
What a muddle.
Sounds more like a fart to me.
I didn’t mean to.
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