Coming to a city near you?
NBC11.com:
The city of Vallejo is on the brink of becoming the first California city ever to declare bankruptcy, City Council members said Tuesday.
Vallejo may run out of cash as early as March, council member Stephanie Gomes said.
"We've spending more than we've been making for 20 years and it's to pay the piper."
Council members Joanne Schivley and Gomes have announced they will host a town hall meeting this Thursday to discuss the very real possibility of bankruptcy.
3 comments:
Toldyaso.
And you thought putting municipal bonds in your 401k was safe! When Vallejo goes BK and Half Moon Bay dissolves, think they won't be defaulting on anything? And how do we think foreign investors will feel about branches of the US government starting to default on their debts? If this gains momentum, watch out...
California has a problem with municipal bonds. We're spending now and moving the payback to the future. Calpers and Calstrs are only funding about 40% of their future retiree health care anticipated.
There will be a day of reckoning when governments understand they can't promise the moon to their employees.
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