I've watched cities, both big and small, spend beyond their means for decades. Most are suffering from their foolishness, and the results terrible. Infrastructure fails, crime increases, taxes increase, the inept hire their inept families in created positions, and the schools are high dollar failed efforts to teach children that have horribly ignorant parents.
Can they go bankrupt? Sure, and I doubt the final results are contemplated by those affected. Funds are allocated by a judge, and the creditors with the most money involved can vote for a plan that substantially reduces the amount owed, but allows some recovery of their lost revenue. Bond holders, that loaned money, when there was not enough available to pay for the rainbow bubbly, have a large amount of money involved, and will get their money. Those that supply city basic necessities also will receive their money. Pensioners? They may find they're last in line, since their payment has always only been a promise on an underfunded account.
Regardless of the smoke and mirrors involved, bankruptcies are Federal litigation, and citizens of cities involved may find they're just collateral damage, since they are ultimately responsible for their city officials. Their ignorance becomes their sentence, and the financial punishment is severe.
Yup. They start spending on "programs" and neglect investment in keeping infrastructure going. Flint, Michigan was just such a failure.ReplyDelete
That's a good example, and ignored by too many.Delete
I was predicting flop houses and bread lines.ReplyDelete
Up here in Edmonton we are starting to see California style tent cities. Panhandlers and beggars are on all the major intersections now.
This winter is going to be murder.
The large cities have problem tent cities, and the smaller cities are now getting a start of the same.Delete
and millions of repo cars n trucks as the stimilus runs out.ReplyDelete
I know too many that rode the unemployment benefits to the end. Instead of searching for a job, they played the game and are now facing money problems.Delete
"I'll gladly pay you Tuesday, for a hamburger today!"ReplyDelete
We knew that was complete foolishness even as pre-teens, didn't we?
But we were stupid. All that was necesary was to plant that money tree.
That's a good analogy. We have a Wimpy economy, and we're running out of hamburger.Delete