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Several California cities have already gone bankrupt and more are teetering on the brink,

What exactly happens when a city goes bankrupt? Do they lose the mayors house? Do the police have to turn in their cruisers?

They dig a trench around the city about 10 ft below the deepest underground structures. Then they cut through and lift the entire city up as one giant unit. Then they move it to a deserted island chosen by the highest bidder who gets to have his way with the property and the inhabitants.

"What exactly happens when a city goes bankrupt? Do they lose the mayors house? Do the police have to turn in their cruisers?"

The city must cut spending by cutting salaries of managers, pensions, etc. Those who receive big cash flow from debt/revenues will cheerlead with false information, claiming that they're doing great in hopes of getting a better deal for repayment.

But eventually, the moves for more debt fail. Taxes and fees can only go so high. Money of real value doesn't grow on trees. People who pay fees and taxes move on. Banks don't stay in business by holding worthless properties and paying taxes on those properties. They usually don't pay property taxes, until a held property sells. If enough properties with high taxes don't sell for a very long time, the game is over.

The game should be over nationwide before long. We're looking for a series of market crashes that will pop the debt bubble. Big government cannot sustain its bigness without sustainable revenues from a large manufacturing base on U.S. soil to afford a large taxpayer base.

To simplify the answer, see the zombie government employees and laid off government employees of Greece. Imagine Greece without nations to shovel more debt to it. That’s us in the near future.

Yay!

“What exactly happens when a city goes bankrupt? Do they lose the mayors house? Do the police have to turn in their cruisers? “

Well, in the case of Stockton, CA although a federal judge gave them the “authority” to give their unions a haircut, they didn’t, they just screwed all their bondholders. So now, when they need money, they will not have any resources for it. But what the hell, all “our beloved city employees” have been taken care of ( for the moment). California cities generally “devote” 75 to 80% of their tax incomes to cops and ffs.(doughnut munchers and those who eat till they’re sleepy and sleep till they’re hungry). I see our ff’s shopping in the most expensive market in town for food “for the house.”But when you’re making $200k a year to sit on your ass, you need good food, right?