Pseudo economics driving municipal bankruptcies across the U.S.
Four U.S. cities went belly up recently, and all declared bankruptcy largely due to unaffordable government pension costs. The outcomes of these bankruptcies should make everyone think twice about lending money to cities with serious public pension debts. The graphic below shows the outcome of the municipal bankruptcies in Vallejo, Detroit, Stockton, and San...
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Tags: bonds, Chicago, Chicago Public School Teachers' Pension and Retirement Fund, Chicago Public Schools, default, Detroit, Franklin Templeton, Government bonds, government pensions, Illinois, Moody's, municipal bankruptcies, pension obligation bonds, property taxes, public pensions, Rahm Emanuel, San Bernardino, Stockton, unfunded liabilities, unfunded liability, unfunded pension liabilities, Vallejo
It seems that push has come to shove in some California cities. The Stockton City Council voted to give its City Manager the green light to file for bankruptcy—which could address the problem of that city’s debt, now thought to be in the range of $25-40 million. The City’s diminished income is not up...
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Tags: American History, Budget and Tax Policy, California, cities, Civil Society, Economics, Elections, fiscal insolvency, government employee unions, government pensions, infrastructure, Labor, local government, Politics, Privatization, public employees, public sector, Robert Fogel, San Diego, San Jose, social services, Stockton, Taxation, Unemployment, Urban Issues, Welfare, X-Prize