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San Bernardino, California, files for bankruptcy with over $1 billion in debts
Rueters ^ | 8-1-12 | Tim Reid

Posted on 08/01/2012 8:47:11 PM PDT by tcrlaf

San Bernardino filed for bankruptcy protection on Wednesday citing more than $1 billion of debts and making it the third California city to seek protection from creditors.

The city of about 210,000 residents 65 miles east of Los Angeles declared a fiscal crisis last month after a report said local government had tapped out its reserves and projected spending would top revenue by $45 million in the fiscal year that began on July 1.

The filing, made in the United States Bankruptcy Court, Central California District, states that the city has "more than $1 billion" in liabilities, and estimated that it has between 10,001 and 25,000 creditors.

(Excerpt) Read more at reuters.com ...


TOPICS: News/Current Events
KEYWORDS: 1billion; bankruptcy; billion; change; chapter9; debts; hope; pensionmadness; sanbernadino
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Not unexpected, but a surprise that they rushed to file BK, ahead of lawsuit filings by the cities unions....

HOPEY-CHANGEY!!

1 posted on 08/01/2012 8:47:15 PM PDT by tcrlaf
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To: tcrlaf

75% of the City’s costs are for salaries and benefits.


2 posted on 08/01/2012 8:50:51 PM PDT by Carry_Okie (The Slave Party Switcheroo: Economic crisis! Zero's eligibility Trumped!! Hillary 2012!!!)
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To: tcrlaf

Don't you worry.

That high-$peed rail will fix everything all up. < |:/~

3 posted on 08/01/2012 8:51:35 PM PDT by martin_fierro (< |:)~)
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To: martin_fierro

Look at the number of stops between San Diego and LA... ain’t no way that leg is gonna be high speed.


4 posted on 08/01/2012 8:57:01 PM PDT by umgud (No Rats, No Rino's)
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To: tcrlaf
The big question is, will those running the city resign and forfeit their government pensions due to reckless mismanagement?

How about the fraud perpetrated by those in city government.

Where are the criminal charges?

5 posted on 08/01/2012 8:57:03 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: tcrlaf

California once again leading the way! What is it the libs in the “media” like to say, “As California goes, so goes....”


6 posted on 08/01/2012 8:57:42 PM PDT by FlingWingFlyer (The NRA did not create James "The Joker" Holmes. Harvey Weinstein's Hollywood did.)
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To: tcrlaf

Yay!


7 posted on 08/01/2012 8:57:59 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: Jonty30

I agree. Let all those union loving idiot municipalities go belly up.


8 posted on 08/01/2012 9:02:07 PM PDT by 1scrappymom
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To: tcrlaf

Maybe they can get a GM style bailout.

Build thousands of electric battery-operated fire trucks and owe us taxpayers $50 billion.


9 posted on 08/01/2012 9:02:15 PM PDT by quantim (Victory is not relative, it is absolute.)
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To: dragnet2

The big question is, will those running the city resign and forfeit their government pensions ..

..to pay for health benefits for illegals.


10 posted on 08/01/2012 9:02:15 PM PDT by Huskrrrr
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To: tcrlaf

It’s only a billion bucks.....they couldn’t call “CareOne” credit counselors?


11 posted on 08/01/2012 9:02:50 PM PDT by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Carry_Okie
75% of the City’s costs are for salaries and benefits.

Exactly, see #5.

12 posted on 08/01/2012 9:03:50 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Vendome
It’s only a billion bucks.....they couldn’t call “CareOne” credit counselors?

To put things in glaring prospective, the U.S. is now in the hole for about 15 trillion.

It takes 1,000 billion to make just 1 billion.

They now need nuclear powered printing presses to keep up, as the old presses have burned through the floors.

13 posted on 08/01/2012 9:06:51 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: tcrlaf

Government should never be allowed to go into debt, especially local ones.


14 posted on 08/01/2012 9:09:15 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: umgud; martin_fierro

Californians like their cars, their traffic jams, and their freeway shoot-outs...


15 posted on 08/01/2012 9:14:56 PM PDT by DTogo (High time to bring back the Sons of Liberty !!)
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To: martin_fierro
The road to hell is paved with good intentions.

"HELL RAIL", high-speed service to hell and beyond.

16 posted on 08/01/2012 9:15:09 PM PDT by Scooter100 ("Now that the fog has lifted, I still can't find my pipe". --- S. Holmes)
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To: tcrlaf

1 billion, WOW! I remember in the 50’s when that burger joint on E St put up the sign “we have served over one million” and thought that was a lot.


17 posted on 08/01/2012 9:15:54 PM PDT by TruthWillWin (The problem with socialism is that you eventually run out of other peoples money.)
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To: tcrlaf

Will anyone say Merredith Whitney was correct?


18 posted on 08/01/2012 9:16:28 PM PDT by blam
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To: Huskrrrr
The big question is, will those running the city resign and forfeit their government pensions due to reckless mismanagement?

How about the fraud perpetrated by those in city government.

Where are the criminal charges?

to pay for health benefits for illegals.

Well, given the fact this is a government sponsored invasion at all levels of government, it would seem appropriate. Let them eat what they wrought.

19 posted on 08/01/2012 9:17:11 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Scooter100
The road to hell is paved with good intentions.

I wish I had the contract for laying down the asphalt.

20 posted on 08/01/2012 9:18:35 PM PDT by Mr Ramsbotham (Laws against sodomy are honored in the breech.)
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To: martin_fierro
B T T T ! ! ! ©

21 posted on 08/01/2012 9:19:33 PM PDT by onyx (FREE REPUBLIC IS HERE TO STAY! DONATE MONTHLY! IF YOU WANT ON SARAH PALIN''S PING LIST, LET ME KNOW)
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To: tcrlaf

San Bernardino is a craphole with many areas you dare not drive through, even in the daytime. I think it is the Calif murder capital.


22 posted on 08/01/2012 9:20:10 PM PDT by doug from upland (Just in case, it has been reserved: www.TheBitchIsBack2012.com)
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To: blam

I will. She has been accurate in her predictions all along, and taking flak for it all along. She took a lot of flak for predicting a slew of municipal bankruptcies. Some of the idiots criticizing her even mistook municipalities (cities, counties, parishes) for states. They mistook here to mean state bankruptcies. Other idiots understood what she meant, but called her nuts anyway. She’s a female Peter Schiff.


23 posted on 08/01/2012 9:21:16 PM PDT by Freedom_Is_Not_Free (REPEAL OBAMACARE. Nothing else matters.)
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To: doug from upland

Another reason those running the city should resign and forfeit their government pensions due to reckless mismanagement.


24 posted on 08/01/2012 9:21:52 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: DTogo
Californians like their cars, their traffic jams, and their freeway shoot-outs...

Well, I admit I do enjoy the pursuits...They make NASCAR seem extremely boring.

25 posted on 08/01/2012 9:28:50 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Huskrrrr

......and college tuition at in-state resident rates.


26 posted on 08/01/2012 9:28:50 PM PDT by CPO retired
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To: CPO retired

Hey, hey...Governor Perry happens to agree with that!


27 posted on 08/01/2012 9:29:52 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: tcrlaf

They should invest in a few Chick-Fil-A franchises and pay that debt off.


28 posted on 08/01/2012 9:40:53 PM PDT by Doomonyou (Let them eat Lead.)
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To: tcrlaf

WHOOPSEY


29 posted on 08/01/2012 9:41:10 PM PDT by HANG THE EXPENSE (Life's tough.It's tougher when you're stupid.)
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To: tcrlaf
Get ready.

Things are only going to get worse (everywhere):

Facebook Stock Crash Hoses California's Tax Revenue

30 posted on 08/01/2012 9:46:21 PM PDT by blam
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To: HANG THE EXPENSE

Just watch what happens in the bankruptcy. The union thugs will get to keep their pensions. The unsecured creditors..contractors and small business..will get zero. The bond holders will get a major hair cut. Just look at what happened with GM as a guide. The only question is whether or not the court can raise taxes.


31 posted on 08/01/2012 9:47:08 PM PDT by Oldexpat
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To: tcrlaf
San Bernardino filed for bankruptcy protection on Wednesday citing more than $1 billion of debts and making it the third California city to seek protection from creditors.

Poor, poor San Berdoonians. If only they had more infrastructure and sustainable whatever thingies.

.

32 posted on 08/01/2012 9:48:10 PM PDT by Seaplaner (Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
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To: dragnet2
It takes 1,000 billion to make just 1 billion.

Is that true in all 57 states, or just California?

Cheers!

33 posted on 08/01/2012 9:48:16 PM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: DTogo

I like my car, live in the country, and commute to the country
for work. I also like my guns. I use them for hunting, trap
shooting, and home protection. I don’t shoot at people on freeways.
I am just one of many boring Californians.......and quite a few of
us read and post right here. Why don’t you stereotype another
state? It it is tired and not at all humorous.


34 posted on 08/01/2012 9:52:42 PM PDT by Sivad (Nor Cal Red Turf)
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To: Oldexpat

Declaring the type of bankrupcy they filed for allows the city to void on union contracts, reduce medical payments even to retirees, reduce salaries. The city will enter into a structured bankrupcy, not a full blown bankrupcy where everything would be sold off to pay creditors. The unions will lose and the current workers.


35 posted on 08/01/2012 9:58:20 PM PDT by rawhide
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To: umgud

“This old engine makes it on time/leaves central station bout quarter to nine/ hits river junction at seventeen to/at a quarter to ten you knows it’s travelin’ again’’. Couldn’t resist it. :-)


36 posted on 08/01/2012 10:21:25 PM PDT by jmacusa (Political correctness is cultural Marxism. I'm not a Marxist.)
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To: tcrlaf

I wonder if they will move the county seat?


37 posted on 08/01/2012 10:28:17 PM PDT by Mike Darancette (Obamaid has to go.)
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To: grey_whiskers
Is that true in all 57 states, or just California?

No, this is you, and all states

__________________________________________________________

The U.S. is now in the hole for about 15 trillion.

It takes 1,000 billion to make just 1 billion.

They now need nuclear powered printing presses to keep up, as the old presses have burned through the floors.

38 posted on 08/01/2012 10:38:59 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Sivad

Speaking up...I like it!

Good job!


39 posted on 08/01/2012 10:41:04 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Oldexpat

and what happens when nobody wants their bonds any more?


40 posted on 08/01/2012 10:52:16 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Sivad
I like my car, live in the country, and commute to the country for work. I also like my guns. I use them for hunting, trap shooting, and home protection. I don’t shoot at people on freeways. I am just one of many boring Californians

I've tried explaining this to people on this site numerous times, but you have a certain class of Freeper that likes to make fun of all CA, presumably so they can feel superior and pretend that the social rot doesn't affect their state because their state is just too cool. Also, non-Californians can't seem to understand the difference between SoCal and NorCal.
41 posted on 08/01/2012 11:04:07 PM PDT by fr_freak
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To: fr_freak

Good post!


42 posted on 08/01/2012 11:16:15 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: fr_freak

Here in San Diego, we also have a island of conservatives trapped. We are fighting a rear guard action. We are hanging on by our finger nails. But today..we had some victory. Our local CFA was jumping. A line at least 200 people and a drive thru that was hard to estimate since they extended into the Sports Arena parking lot. No sign of Fags. There were even Navy uniforms in the line..like most days there. News channel with camera’s and new helo overhead. No extra police when I was there,because of the huge parking lot next door..traffic wasn’t effected, but a lot of conservatives turned out.


43 posted on 08/01/2012 11:26:23 PM PDT by Oldexpat
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To: Carry_Okie
75% of the City’s costs are for salaries and benefits.

That is what should finally convince voters everywhere that we need massive, drastic change. Basically, the government cannot provide the services we pay taxes for because the money is going to payroll and pensions for people who are supposed to provide them. When they complain there is no money to provide the services they are right... they took it all home in salary and benefits.

Atlas will shrug. The private sector producers but especially the private sector employees who do substantially the same or even more difficult and demanding work than public sector employees but can't earn anywhere near the same salary and benefits will revolt. They are being asked to pay employees who can't provide the services their taxes are meant to pay for! It's a raw deal, a bad bargain, and it can't last much longer.

44 posted on 08/01/2012 11:45:12 PM PDT by monkeyshine
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To: fr_freak; Sivad

Thank you!

If one big Tsunami hit here this state would go red. Where would the libtards go? Who would feed them? Who cares.


45 posted on 08/01/2012 11:46:33 PM PDT by 1035rep
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To: Oldexpat

“We are fighting a rear guard action.”

It’s no picnic that’s for sure.


46 posted on 08/01/2012 11:48:48 PM PDT by 1035rep
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To: monkeyshine
That is what should finally convince voters everywhere that we need massive, drastic change.

Much of that is hard to do because so much of the policies that enlarge the personnel roles are driven by court decisions.

47 posted on 08/01/2012 11:49:08 PM PDT by Carry_Okie (The Slave Party Switcheroo: Economic crisis! Zero's eligibility Trumped!! Hillary 2012!!!)
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To: dragnet2
It takes 1,000 billion to make just 1 billion.

Read that sentence again, please...

Cheers!

48 posted on 08/02/2012 3:12:07 AM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: GeronL

Yep, are bonds still considered a safe investment, or is it just another derivative to bundle for investors? (Rhetorical)


49 posted on 08/02/2012 3:21:48 AM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: dragnet2
In San Bernardino, a recent report by the city attorney said officials had falsified budget reports to the mayor and council for 13 of the last 16 years, hiding the scale of the city's debt.

Where are the criminal charges????

50 posted on 08/02/2012 4:45:39 AM PDT by glorgau
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