Posted on 11/11/2013 10:55:22 AM PST by george76
Desert Hot Springs, the resort town near Palm Springs, may become the first city since Detroit to seek bankruptcy protection from creditors
...
Chapter 9, it would be the fourth California city since June last year to do so.
(Excerpt) Read more at labusinessjournal.com ...
The spa capitol of CA!
Desert Hot Springs tends to go bankrupt every 2-5 years since the 70s. Not a reliable place for municipal employment. Sits right on top the San Andreas and tends to attract many Latino laborers and their families throughout the Valley.
But the chamberpot of commerce says we need cheap labor, I’m confused?
I don’t know about that recurring bankruptcy but it is a great idea. I’ve seen the airlines do it for decades. Declare bankruptcy, no debt, borrow to the hilt again, wash, rinse, repeat.
Three guesses on why they are bankrupt (as the article doesn’t mention it).
1. Insane public union pensions...
2. An insane deal with a Wall Street Brokerage House that made the simple act of borrowing money at a fixed rate into a huge money losing event...
3. Insane public union pensions...
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