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3 huge cities flirting with bankruptcy (NYC, Chicago, LA)
MSN ^ | 3/03/14 | Karen Riccio

Posted on 03/03/2014 4:18:34 PM PST by Libloather

Detroit's looming bankruptcy is making news again, this time focusing on current restructuring plans aimed to wipe out $18 billion in debt by axing pension checks of city retirees, including police and fire.

Massive long-term retirement and healthcare promises were by no means solely responsible for the city's fall, but these massive pensions coupled with a tax base weakened by high unemployment and housing vacancies caused the budget to bleed out quicker.

The Michigan city may be the most recent victim of bankruptcy, but many of the 61 largest U.S. cities have adopted the same retirement legacy leading to $118 billion in unfunded healthcare debts. Retired city workers stop contributing to the system; the system keeps paying them; and before you know, a fiscal crisis has begun.

If you think the three cities below are too big to fail, think again.

(Excerpt) Read more at money.msn.com ...


TOPICS: Crime/Corruption; Extended News; Government; News/Current Events; US: California; US: Illinois; US: Michigan; US: New York
KEYWORDS: bankrupt; bankruptcy; chicago; cities; creditrating; detroit; la; losangeles; moody; moodys; newyork; nyc
Unexpected.
1 posted on 03/03/2014 4:18:34 PM PST by Libloather
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To: Libloather

All run by the party that never gets named


2 posted on 03/03/2014 4:19:37 PM PST by al baby (Hi MomÂ… I was refereeing to Obama)
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To: al baby

It must be the fault of the eeeevil Tea Party or George Bush.


3 posted on 03/03/2014 4:22:11 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
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To: Libloather

The servants now own the manor and the squire’s are out in the cold.

How’d they pull that off?


4 posted on 03/03/2014 4:24:25 PM PST by DManA
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To: Libloather

I’ve been saying it all along.

Its why I’m glad that Detroit is being treated as a mostly in house matter despite the pain. Now let those states bail out their own cities.


5 posted on 03/03/2014 4:26:39 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Libloather

Notice that the next largest metro area ain’t nowhere near that list?


6 posted on 03/03/2014 4:26:50 PM PST by 2ndDivisionVet (I will raise $2M for Sarah Palin's next run, what will you do?)
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To: Libloather

Personally I think Obama has been quietly shuffling money into Chicago by way of Chicago area Czars with big budgets who don’t seem to do anything.

Chicago Crony Cameron Davis got the job of Great Lakes czar and a $20 billion budget back in 2009 and apparently dropped of the map because I can’t see that he’s done anything since.


7 posted on 03/03/2014 4:36:57 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Libloather

I’ve got a solution for L.A. Take half of all the wealth at the Oscars last night. I’m sure it would make a dent. And I’m positive they would all happily give. /s


8 posted on 03/03/2014 4:39:35 PM PST by VerySadAmerican (".....Barrack, and the horse Mohammed rode in on.")
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To: Libloather

California, Illinois, New York

107 electoral votes for the Dems without spending a penny of campaign money.

I’m predicting all three get federal guarantees for their state borrowing courtesy of the regime.


9 posted on 03/03/2014 4:40:03 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: VerySadAmerican

How many of those big earners are legal residents of low tax states? Might be interesting to know....


10 posted on 03/03/2014 4:41:51 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: Libloather

“but these massive pensions coupled with a tax base weakened by high unemployment and housing vacancies”

Let’s not forget the Conservatives leaving by the droves because of the liberalization of Califonia.


11 posted on 03/03/2014 4:43:58 PM PST by Parley Baer
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To: Libloather

welcome to the first three thunderdomes.


12 posted on 03/03/2014 4:45:01 PM PST by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: Parley Baer

Well, the news is plastered all over the lib news. One would think some of these minds full of mush would make SOME sort of connection . . .

But nooooooo.


13 posted on 03/03/2014 4:45:56 PM PST by LibsRJerks
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To: nascarnation
California, Illinois, New York

107 electoral votes for the Dems without spending a penny of campaign money.

Very astute and sobering observation.

14 posted on 03/03/2014 4:45:57 PM PST by exit82 ("The Taliban is on the inside of the building" E. Nordstrom 10-10-12)
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To: cripplecreek

rahm wouldn’t blow the whistle. the software team fixing the obamacare website is based in, chicago. surprise. they have big ties to barrycades.


15 posted on 03/03/2014 4:46:37 PM PST by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: Libloather

Adjusted for current population, NYC is worse than Detroit.

But adjusted for income or property values or rate of growth or decrease in population, NYC is way way ahead of Detroit and so is probably not near the top for a bankruptcy.


16 posted on 03/03/2014 4:50:28 PM PST by staytrue
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To: Libloather
The tremendous growth in payouts for retirement benefits over the years certainly lends merit to his prophecy "of bankruptcy". According to Stanford Institute for Economic Policy Research, pension costs in L.A. increased from 8.5 percent of total city expenditures in 1999 to 15.4 percent for fiscal 2012.

Cops, firemen (auto collision responders) city council, all the government departments and their bloated salaries...

These governemnt employees and their obscene tax paid retirement pensions are gang banging the American private sector...

17 posted on 03/03/2014 4:53:58 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: cripplecreek

“...Chicago Crony Cameron Davis got the job of Great Lakes czar and a $20 billion budget back in 2009 and apparently dropped of the map because I can’t see that he’s done anything since.”
******************************************************************

My goodness...this czar has succeeded beyond his wildest hopes. As an “environmentalist” he wanted to fight global warming. He has succeeded in defeating global warming in his czardom (the great lakes) to such an extent that these lakes are close to 100% frozen over.

/sarc


18 posted on 03/03/2014 4:57:03 PM PST by House Atreides
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To: Libloather

We knew that they would follow Detroit. They were, are ruled by DemocRATS.


19 posted on 03/03/2014 5:01:17 PM PST by SandRat (Duty - Honor - Country! What else needs said?)
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To: nascarnation
California, Illinois, New York

107 electoral votes for the Dems without spending a penny of campaign money.

Yeah, but our ace in the hole is Congress has to appropriate the funds, right? Right??

Oh, wait. Never mind...

20 posted on 03/03/2014 5:08:38 PM PST by Gritty (Inside every liberal is a totalitarian screaming to get out! - David Horowitz)
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To: al baby
All run by the party that never gets named

Must be Republicans. Everyone knows the media protects them.

21 posted on 03/03/2014 5:09:55 PM PST by Hardastarboard (The question of our age is whether a majority of Americans can and will vote us all into slavery.)
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To: VerySadAmerican

“I’ve got a solution for L.A. Take half of all the wealth at the Oscars last night. I’m sure it would make a dent. And I’m positive they would all happily give. /s”

Whenever liberals start preaching to me about income equality, the 1%, and the evil rich I tell them I’ll be happy to listen when wealthy Democrats pushing this redistributionist line (Oprah Winfrey, Warren Buffett, George Soros, the Kennedy family, Barack Obama, Bill and Hillary, Mark Zuckerberg) step up to the plate and set an example for the rest of us by turning more than 50% of their accumulated wealth to the government. Until they put their money where their mouths are, it is all BS.


22 posted on 03/03/2014 5:28:47 PM PST by Soul of the South (Yesterday is gone. Today will be what we make of it.)
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To: Libloather

And the evil ones are?...........................conservatives, some republicans and the teaparty


23 posted on 03/03/2014 5:31:01 PM PST by ronnie raygun (zippy the a##clown sez..............................)
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To: Libloather

Now that Obamacare is the law of the land, all the retirees that were promised free health insurance are getting policies that have to cover everything under the sun at huge increases in premiums.


24 posted on 03/03/2014 5:38:33 PM PST by Go Gordon (Barack McGreevey Obama)
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To: Libloather

Everybody hates Bill de Blasio. Charlie Brown struck out Bill de Blasio and then said, “I hate Bill de Blasio. What kind of guy makes up his own name and puts a ‘de’ in it? I just hate him.”


25 posted on 03/03/2014 6:28:55 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: Libloather

50-60% of most money market and bond funds are comprised of issues from those states. There is no safe harbor...


26 posted on 03/03/2014 6:44:04 PM PST by OldCountryBoy (You can't make this stuff up!)
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To: OldCountryBoy

This is hogwash. Chicago is not the next Detroit and won’t be. It has a much too diversified tax base, unlike Detroit. And the State already just did a pension deal at the end of 2013 for its State employees. Next year, after the elections probably, it will do one for the City employees also. What we need in this state is more jobs. Hopefully that will improve next year, in particular if the Pubs can win the Governorship this fall, which is actually possible this year. Hope springs eternal.

I can’t speak to the situations in NYC and LA, only Chicago.


27 posted on 03/03/2014 7:01:47 PM PST by flaglady47 (Oppressors can tyranize only w/a standing army-enslaved press-disarmed populace)
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To: blueunicorn6

How long does it take for a slum like Detroit to finally actually go bankrupt for real? Its always looming but never happens...


28 posted on 03/03/2014 7:46:59 PM PST by bigtoona
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To: dragnet2

“Cops, firemen (auto collision responders) city council, all the government departments and their bloated salaries...These governemnt employees and their obscene tax paid retirement pensions are gang banging the American private sector...”

Here in NJ the most damage comes from public school teachers; we’ve laid off cops and firemen, but not nearly enough teachers. They work 180 days per year (not even full days), and are paid better than many private-sector workers with “real” degrees (who in turn are expected to pay them).


29 posted on 03/04/2014 3:58:42 AM PST by kearnyirish2 (Affirmative action is economic war against white males (and therefore white families).)
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To: cripplecreek

“Its why I’m glad that Detroit is being treated as a mostly in house matter despite the pain. Now let those states bail out their own cities.”

They can’t; there is no money. Within the past year or so someone posted an article in which a black city council was fighting with white retirees about how their retirement benefits were consuming the current revenues (leaving nothing for current employees or services); here in NJ it is the remaining white taxpayers having that fight with the white retirees. The only solution seems to be white flight from the whole state, and that is exactly what is happening.


30 posted on 03/04/2014 4:05:09 AM PST by kearnyirish2 (Affirmative action is economic war against white males (and therefore white families).)
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To: kearnyirish2

At some point the problems have to be fixed. I don’t love the fact that Michigan residents have to carry this burden but it is our burden. I personally take pride in the fact that it isn’t being dumped on taxpayers nationwide. Sure Detroit is getting some federal money but all cities are getting federal money regardless what kind of shape they’re in. The GOP owns this state and we have to fix the problems.

All I ask is for the $250 million required to prepare our side of the Detroit river for the bridge than Canada is paying for. Naturally, that’s what Obama withholds. Detroit is the second busiest freight crossing on the continent and that fact alone should make the city boom. Unfortunately almost all that traffic is bottlenecked across one 90 year old bridge in poor repair and its owned by Detroit’s wealthiest democrat donor and slumlord.

Despite the lips that flap on autopilot here at FR, things are changing in Detroit. The crime rate is falling due to a tough pro gun police chief and an armed citizenry. Tough new election laws and a tough Secretary of state backing them have led to Detroit electing their first white mayor (D) in a half century. Even the black nationalism that sprung forth from Detroit is dying. Private competition with public utilities is legal and growing in Detroit.


31 posted on 03/04/2014 4:57:52 AM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Libloather

NYC should reverse it’s Rush rule that taxes all income earned there even if the recipient is not a resident.

The reverse would be that pensions to non residents are not paid. Those that moved away, to east Tennessee for instance, would get no pension.(we have several fire/police that moved here from NYC)


32 posted on 03/04/2014 5:10:00 AM PST by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
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To: Libloather

They spent themselves into a hole (when they weren’t allowing it to be stolen) and now they want to punish the people to whom they promised a pension.


33 posted on 03/04/2014 5:14:45 AM PST by AppyPappy
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To: Libloather

NYC? No way, EVERYTHING is taxed...


34 posted on 03/04/2014 9:26:41 AM PST by jughandle
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To: Libloather
My oldest child...is moving out of L.A.

Coming back home...

I could not be happier!!

35 posted on 03/04/2014 9:31:40 AM PST by Osage Orange (I have strong feelings about gun control. If there's a gun around, I want to be controlling it.)
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To: 2ndDivisionVet
Notice that the next largest metro area ain’t nowhere near that list?

I went to the link to get the list on the 61 cities but could not find it. Do you know where Houston stands?

36 posted on 03/04/2014 2:39:25 PM PST by houeto (We intend to liberate Democrats from the dreaded Job-Lock this November!)
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To: houeto

Dallas/Ft Worth is fourth, Houston MSA is fifth:

http://en.wikipedia.org/wiki/Demographics_of_the_United_States


37 posted on 03/04/2014 2:46:27 PM PST by 2ndDivisionVet (I will raise $2M for Sarah Palin's next run, what will you do?)
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To: Libloather

-They need to raise taxes to fix their spending problem.

-Maybe Bronco will give them a 50 trillion dollar bailout.

-Better yet, put everybody on unemployment, that seems to be a libtard fix for everything.


38 posted on 03/04/2014 3:05:38 PM PST by eyedigress ((zOld storm chaser from the west)/ ?s)
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To: 2ndDivisionVet

Thanks Vet. I was sure hoping both were further down the list.


39 posted on 03/04/2014 5:37:41 PM PST by houeto (We intend to liberate Democrats from the dreaded Job-Lock this November!)
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To: houeto

They’re bound to get bigger and more prominent as many people head here to get away from places like New York, Connecticut, California and Colorado.


40 posted on 03/04/2014 5:41:29 PM PST by 2ndDivisionVet (I will raise $2M for Sarah Palin's next run, what will you do?)
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To: cripplecreek

I’m glad things are changing in Detroit; I believe a lot of it is tied to depopulation (if you shed the worst gibsmedats then your costs fall and productive people can enter without fear for their personal safety). As far as the problems “have to be fixed”, the Dem solution is to nationalize the poverty industry (eliminating differences between how states pay their gibsmedats - either the welfare type or the workfare type - gubmint workers). In the meantime, the “fix” can take decades, even lifetimes.


41 posted on 03/05/2014 3:42:02 AM PST by kearnyirish2 (Affirmative action is economic war against white males (and therefore white families).)
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