As the dominoes continue to fall worldwide, Stockton CA could be the most recent entry into ‘reorganization’, read bankruptcy. This would be a big blow to all the MSM hype that we are in an economic recovery, although the administration has backed off on making these claims, at least on a daily basis.
If you haven’t already questioned the economic recovery, now might be a good time to start. There will be more of these type municipal bankruptcies as time goes on and the tax base shrinks more and more.
I think that we are moving farther into an economic recession and more pain is yet to come.
The city of Stockton, Calif., on Tuesday verged on filing to reorganize under the bankruptcy laws, media reports say. The move would make the city, located in central California, the largest U.S. city to file under Chapter 9 of the federal bankruptcy laws. The city completed 90 days of required mediation with its creditors on Monday night into Tuesday, reports say. Reports say that the city borrowed hundreds of millions of dollars to build projects in the mid-2000s. Now, the city has a $26 million budget deficit, after the economic turndown prompted many property foreclosures and sharp unemployment, reports say. The City Council meets Tuesday evening, and media reports say that the council members will take up and vote on a budget that will guide the city during bankruptcy proceedings. California cities must adopt balanced budgets by July 1 each year, reports say.
These folks are in for a world of hurt. Services will be cut and lawlessness could become the standard. I remember the words of a judge in a midwestern state as the sheriff’s department was cut in half…my suggestion is that the citizens arm themselves.