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Bankruptcy in Calif. cities


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Old 07-12-2012, 07:19 PM   #21
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Wasn't Orange County, CA the test case or origin of Chapter 9?
Bingo, Orangello!!

It was not the test case or the first county go under: But it caused shockwaves on Wall St.

Orange county, CA went under when the unqualified county treasurer made some very risky investments. It will happen again.

http://www.ppic.org/content/pubs/op/OP_398OP.pdf

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On December 6th, 1994, Orange County California became the largest municipality in U.S. history ever to file for bankruptcy. The financial difficulties leading to the bankruptcy were the direct result of an enormous gamble with public funds taken by a county treasurer who was seriously under-qualified to deal in the kinds of investments he chose. Because of his shortcomings, because of Orange County's national reputation as a land of rich, spoiled, archconservatives, and because the bankruptcy did not play out as other municipal financial crises have, many observers have dismissed it as an anomaly. It may have been a nasty surprise for Wall Street, they argue, but it is not something that is likely to happen again, even in Orange County.
WV voters elected an unqualified good old boy to state treasurer. A. James Manchin fired all the employees and brought in his good old boys who bankrupted the state retirement fund with speculation in junk bonds.

http://www.wvencyclopedia.org/articles/764

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After the loss of about $279 million from the state’s Consolidated Investment Fund in 1987 and 1988, Treasurer A. James Manchin was impeached and resigned in 1989.

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Old 07-12-2012, 10:40 PM   #22
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Wait for it, I'm sure some lib will come on here and suggest these cities just raise taxes. While completely ignoring the fact that the local government has already squandered all the money. I'm sure the libs in Kalifornia are already discussing that if they just got a little more tax money they could straighten out this mess.
So is the problem city employees being over paid or mismanagement by city officials who are almost certainly over paid? Sounds just like the private sector doesn't it?
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Old 07-12-2012, 10:53 PM   #23
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Awww,theyll be ok.

''We The Tax Payers'' will bail them out also
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Old 07-12-2012, 11:53 PM   #24
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Pensions are a big problem for all cities, counties, and states. All are under-funded. Talk about a pyramid scheme. It takes 12 to 20 workers to pay for one guys pension. And often they can retire by age 55(or even earlier) at 75% to 100% of their last wage. Some get paid health insurance forever. No way can that be sustained for any length of time by a gov entity.
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Old 07-13-2012, 12:11 AM   #25
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So is the problem city employees being over paid or mismanagement by city officials who are almost certainly over paid? Sounds just like the private sector doesn't it?

What are you asking me for did I say anything about paychecks? I have no problem with somebody making a paycheck for working. What I have a problem with is people making a paycheck for not working. I have problems with stealing money from working people and giving it to those who won't work. I have a problems with a government who constantly rewards bad behavior. I have problems with wasteful accounting practices of government. ie. Spend everything in the budget or you won't get the same amount next year. I have problems with governments that are to short sighted to plan for the future. A neighboring county in my state built a new county jail and they paid for it by raising the sales tax in the county. Two problems with this. 1. the taxes never went back down after the jail was paid for.
2. they had 108 years to plan for a new jail and didn't. Can you imagine if you told the IRS you couldn't pay your taxes this year because your house needs a new roof. Even though you had 20 years to plan for the event.
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