“If you want to understand better why so many states—from New York to Wisconsin to California—are teetering on the brink of bankruptcy, consider this depressing statistic: Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million). This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.”
Hamtramck, MI is wanting to file for bankruptcy. Others are possible.
A very diverse group of people such as hedge fund guru George Soros, JPMorgan’s CEO, economist Nouriel Roubini, financial expert Meredith Whitney and Bill Gates warn that local government finances are embarrassingly defective, if not criminal or highly unethical, and that there are likely to be many local bankruptcies and many municipal bond defaults.
Very interesting video of former LA Mayor. LA financial situation is totally unsustainable.
Watch the video.
NY Gov Cuomo said “New York state is functionally bankrupt.” “In a down economy, this is a death spiral.”
He spelled out a plan to eliminate as many as 11,500 state jobs through layoffs and attrition. Of course the unions oppose this and want him to raise taxes. Lets see what happens!
Idaho’s Boise County filed for bankruptcy.
Insufficient funds to pay for obligations.
After 1933, FDR pushed through a new bankruptcy law that allowed towns and cities to declare bankruptcy.
In 1975, NYC was about to declare bankruptcy when it was BAILED OUT at the last minute. By whom was it bailed out? The federal government of course.
Which state will declare bankruptcy? POLL
The city had to declare bankruptcy because government union workers refused to accept salary cuts.
How many other cities and states will have to do this?