ANOTHER ONE BITES THE DUST: SAN BERNADINO SEEKS BANKRUPTCY

Posted: July 11, 2012 in Blog, Economics
Tags: , , , ,

The Third California city in a month has now sought Bankruptcy protection with a 46 million dollar deficit and near empty city accounts.

Officials have said the situation is so dire they cant even cover the payroll through the summer, the council passed the resolution, with the Mayor opposing but saying the only other option was “draconian cuts” to all city services.

The reasons for the bankruptcy as said to be due to the recession, escalating pension costs and lucrative labor agreements (ANYONE SEEING A TREND HERE???)

The city “s still facing the possibility of insolvency due to a variety of issues including accounting errors, deficit spending, lack of revenue growth and increases in pension and debt costs,” according to a budget analysis prepared for the council.

According to the L.A. Times

“City Atty. James Penman said city budget officials had falsified documents presented to the mayor and council for 13 of the last 16 years, masking the city’s deficit spending.

“For the last 16 years the budget prepared for the council showed the city was in the black,” Penman said, not naming those allegedly responsible. “The mayor and the council were not given accurate documents.” “

 

ANALYSIS:

Many of you are probably saying “Hey Stockton, Mammoth Lakes and San Bernadino are just California problems and Providence and Scranton are Liberal strongholds, this isnt that big of a deal, just liberal chickens coming home to roost and will show everyone how wrong they are.”

Well you are right in a very small degree, for years those of use with any brains have been looking at California and saying “This isnt sustainable”  And for a long time my opinion was, well let California run itself into the ground who cares.

The problem is….THIS ISNT JUST CALIFORNIA!

They have been the first to fall, because well they were the worst of the worst, BUT most cities, states, boroughs, municipalities, counties, etc. are not any better off, and the problem is the ones that are…well…they are so interconnected to everyone around them, reliant on the state, the feds and others for major parts of their operating budgets, no one is safe.

This is just one big spider web, everyone is connected and some places have been putting up heavier and heavier objects (debt) on their parts of the web, and when they fall they tear the strings around them and when that happens in too many places the web tears everywhere and flops around in the wind (nice analogy right?)

 

FOLKS YOU NEED TO UP YOUR PREPPING BY 10 fold, dont take those vacations, dont get the new whatever you want, take that money, that time and put them into getting ready for whats coming, I cant stress this enough.

It wont happen tomorrow, these things take time, but they degenerate over that time and things speed up as the time passes, it may be a few years it may be five, but getting preps ready, especially on a tight budget takes time, use it wisely

 

GREAT NORTHERN PREPPER OUT

Comments
  1. Mike Warford says:

    I live in Ontario, Canada and i am getting very concerned over the state of the worlds ecomony. Corporate greed has gotten us here. Also with the threat Iran poses in the middle east and the closing of Iranian bank accounts in Canada. Suggests there will be some kind of action taken. The threat posed from their neuclear aggression with regards to a high altitude nueclear detonation and the EMP it would create. Also the threat from the sun regarding EMP’S it could create during this cycle. We could very well be in for something huge in a shift of how our world is. Lets all hope it passes without incident but best to prepare.

  2. Great Northern Prepper says:

    I would have to disagree with you a little Mike. Corporate Welfare mixed with Organized Labor’s greed and corrupt politicians led to this. We subsidize everything in our country, multi billion dollar corporations dont need farm subsidies to grow corn. Public Union Pension funds are unsustainable, there are cities where you can retire in 20 years with 100k a year pension, which would be fine, but the contributions dont match the output, 1-2 doesnt equal 0. And politicians, city councils, mayors, senators all decided it was better to borrow borrow borrow, and now the chickens are coming home to roost. I dont blame the worker, they saw a job that offered this and took it, but we are all in the same boat, it cant be done long term. The end will be the same now, there isnt enough backbone left in this country to do anything radical to change course. As we always have we will try to borrow more, delay, delay, delay and then one day the check cant be put off till tomorrow, and then BAM bankruptcy! we are seeing the beginning of the first wave, much like in 07-08 when the first hoursing markets started to tumble, the majority of the talking heads and folks in charge just said “oh this is just this areas problem” it continued to mount and the house of cards fell, this is the same thing.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s