Posted on 10/01/2014 4:14:40 PM PDT by aimhigh
In a potentially groundbreaking decision, a federal bankruptcy judge today struck down the sanctity of government pensions in California, saying the city of Stockton has the right to sever its contract with CalPERS.
The verbal ruling from U.S. Bankruptcy Judge Christopher Klein, two years after Stockton filed for bankruptcy, was the decision CalPERS longed to avoid.
(Excerpt) Read more at sacbee.com ...
That’s a nuclear domino. Watch for lots of other municipalities in CA to start doing this.
The money needed to finance the Free S**t Army.
“There are a whole lot of unions that will be jumping in on this one”
Not much they can do about it save appeal it up the chain. Bankruptcy law under Chapter 9 is crystal clear, however so they will lose. It’d take an act of Congress to change this and I doubt even Beohner will lift a finger to help out the public sector union leeches in California.
L
Thanks for posting!
The cesspool will not drain.
Look for the boy to intervene, lots of his sons in Stockton.
> The result would be a mass exodus of employees, the city says.
I’d bet they lose far less than expected. Simply put, public employees get a pretty good deal.
https://www.youtube.com/watch?v=4SFdI2ejaGw
GM was the warning shot across the bow, Detroit followed. So will it be a bunch of California Cities or Illinois that will be next?
I’m not surprised. The USSC has ruled numerous times that local, county and state governments are sovereign, meaning that they can nix contracts passed by previous legislatures.
I’ve had left wing, big government FReepers argue with me that contracts trump the Constitution. Uh-uh. There ain’t no such thing as a plenary legislature. What one group of lawmakers passes in one session can be canceled by the legislative body that follows.
Interesting. I believe CalPERS has a huge chunk of its money in the PIMCO Total Return fund. DId Bill Gross get a whiff of this decision and jump a sinking ship that he built?
I hope the unions take all their funds to fight this.
Saw that the other day on Zerohedge. In fact, I think it mentioned that Calpers was pulling their money.
Will the Federal government step in to save them like they did with “Government Motors”. Will the bankruptcy judge get visited by NSA and advised to change his ruling? Will the bankruptcy judge die in a strange car accident? Lots of possibilities before Oct 30.
Hang on there. I've been involved in a very large corporate BK in Kali and we had a Reagan-appointed judge properly award us the verdict we were looking for, only to be reversed by the ultra-liberal Bankruptcy Appeals Board (BAP) on appeal.
You never know what might happen with the idiots on the BAP.
“The result would be a mass exodus of employees, the city says.”
You have to get all the way to the end for the BIG LIE. With Real Unemployment at 20% in California, WHO CARES? Put a Help Wanted sign out front and you will have ten times the number of applicants on day one.
Union Bribe money is far more important than mere peasant taxpayers money
“Look for the boy to intervene, lots of his sons in Stockton.”
Actually, the major “constituency” in Stockton are Latinos. The thing here is if Stockton goes through bankruptcy without diddling CalPers, they will be back, just like Vallejo is going to have to go back in because they didn’t really address their public pension exposure. I don’ think that “the boy” has the bandwidth today to get into these issues. HIs sorry a$$ is already on fire, he doesn’t need any gasoline on it.
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