Posted on 12/23/2010 8:19:16 AM PST by Jim from C-Town
2011 will be the year of the municipal default. At least that's what analysts like Meredith Whitney predict, as do bond investors that have been fleeing the muni market.
There are many reasons to be worried. First, the expiration of Build America Bonds will make it harder for cities to raise funds.
Second, city revenues are crashing and keep getting worse. Property taxes haven't reflected the total damage from the housing crash. High joblessness is cutting into city revenues, while increasing costs for services.
The next default could be a major city like Detroit, or it could be one of hundreds of small cities that are on the brink. Did we leave off your ailing city? Let us know in the comments.
San Diego, Ca.
(Excerpt) Read more at finance.yahoo.com ...
On 15 Dec. 1978, Cleveland was unable to pay off $15.5 million in short-term notes, the cities reputation and bond rating have never fully recoverred.
If dozens of cities default on their bonds, will the ation ever fully recover? Will we never stop giving in ot the thug unions that require pay and benefits well over the value of the work received?
The relatively conservative San Diego? Who woulda thunk !!
And Obama and his socialist attack on America continue....and he is STILL in office.
Cool - shut em down.
HaHa.. All are in blue states. Let them sink. I might help out NJ. They are staring to come to their senses.
It’s our once in a 100 year chance to destroy the Police State! Get rid of the all the otherwise unemployed lawyers polluting city hall! Whats the worse that could happen? Put city workers in tents, sell off all the buildings and cars.
So many problems solved at one time!
Very very good news.
The Federal Reserve can bail them out.
Cincinnati, which is hell bent on ramming a street car boondoggle down the peoples’ throats. They do not call them the City “Clowncil” for nothing, after all.
The city that I used to live in was fairly liberal. Just read an article about how they're laying off police and fire, while simultaneously building a new, state-of-art natatorium.
That'd be an Olympic-sized Indoor Swimming/Diving facility, with a smaller "training" pool. And viewing facilities, I'd assume for the few dozen people who will show up to watch such things.
Woohoo Chicago is a bonus thrown in on the list. Quinn to the rescue though with the state income tax increase, which will decrease sales tax revenue, but don’t tell the idiots in government that. FTR the collar county RINOs are all for Quinn because they are all gooberment tit babies as well.
If WASH DC cannot make it....??? I do NOT want OUR TAX money going to help ANY of these cities...IF bailouts happen, I suggest millions with hold tax payments....
If all of the public entities in the U.S. were required to use GAAP accounting, and recognize liabilities such as unfunded pension obligations, at least half of them would be technically bankrupt.
These incompetent morons are beyond outrageous.
I am hoping entire states default - California, Illinois, and my own state of New York would be good places to start.
Governments, unions, and taxpayers all need a big does of reality.
How many of these places will have full or partial bailouts? bet your bottom dollar D.C. gets bailed out by you and me.
“The relatively conservative San Diego? Who woulda thunk !!”
their City Council and mayor are as far left as yo can get.
PHILLY IS NOT ON IT!!!!
Camden doesn't count.
Only Pa. city is Reading, although you kind of wonder why Harrisburg isn't . Maybe they figure it is already bankrupt.
Harrisburg was smart (in a cynical way) - they went broke while there was still some cash to bail out defunct cities. There won’t be cash in a couple of years as the defaults escalate.
Dee Cee has little industry other than the Federal Government; the Feds own a huge amount of the real estate and improvements thereon; most of the permanent residents have incomes well below the poverty line. As a result, the place has virtually no tax base.
Almost all of their revenue comes from Federal appropriations ... or in other words, you and me.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.