The Scary Future of Municipal Bankruptcy - California Leads the Way

[xchrom]

http://www.alternet.org/economy/scary-future-municipal-bankruptcy-california-leads-way?akid=9168.277129.16BXT1&rd=1&src=newsletter687370&t=10

In California, the names of the latest victims are well known. San Bernardino, Stockton and Mammoth Lakes all filed for bankruptcy within the last few weeks. And Vallejo emerged from Chapter 9 protection just last year. The questions appear to be "Why all in California?" and "Who will be next?"

Although California's problems are extreme, the state is hardly alone in financial difficulties. Towns and counties in Alabama, Illinois, Michigan, New Jersey, New Hampshire, New York, Pennsylvania and Rhode Island are all having trouble meeting their financial obligations. If these conditions continue to spread, the United States will be facing a crippling debt crisis at the state and local levels, which is where Americans receive much of what matters for their quality of life.

This was a central point in a report released July 17 by the State Budget Crisis Task Force headed by former Federal Reserve Chairman Paul Volcker and former New York Lt. Gov. Richard Ravitch.

Simply put, in the aftermath of the financial crisis emanating from Wall Street, the federal financial mess is bleeding over into state budgets in profound ways, adding enormous costs to already overburdened state coffers. That spillover, in conjunction with broader national crises in finance and healthcare, is overwhelming state and federal finances.

[annabanana]

1. And yet, the Norquist-addled House teabaggers are not

held accountable.

Damn our useless media.

[Earth_First]

2. The Prison Industrial Complex

Eliminate the profit in housing non-violent offenders, predominately African-American males on low level non-violent marijuana charges...

[Starry Messenger]

3. We're watching the failure of late capitalism.

It has no solutions to this. What happens next is going to be up to us little people.

[Earth_First]

4. Let's roll...

I'm ready.

[marmar]

5. k/r

[msongs]

6. good thing our federal goverment is protecting wall street from any responsibility or culpability nt

[rurallib]

7. tax breaks for businesses by local and state gov'ts have a big effect also

seems like every city is willing to do about anything to say that they brought jobs in. The costs seem to linger long after the jobs have moved to the next stupid city.