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California government is in deep trouble. Here is one example.
"Antioch's leaders earlier this month said bankruptcy could be an option for the cash-strapped city of roughly 100,000 on the eastern fringe of the San Francisco Bay area.
Antioch's fiscal woes are standard issue for local governments in California: weak revenue from retail sales and property taxes is forcing spending cuts, layoffs and furloughs.
But cost-cutting measures may not be enough to keep Antioch's books balanced, so its city council is openly discussing bankruptcy."
Actually, this is a good idea--end the union and special interests control of government.
the really good news is that this would stop government from borrowing money, the cause of the debt in the first place.
"A filing for Chapter 9, the part of U.S. bankruptcy code that applies to municipalities could also result in being locked out of the municipal debt market, adding to fiscal trouble.
"We take that very seriously," Amy Doppelt, a managing director at Fitch Ratings, said of how talk of bankruptcy could affect credit ratings."
I hope every government agency files for bankruptcy--it ends the union control and stops spending money they do not have.
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"Antioch's leaders earlier this month said bankruptcy could be an option for the cash-strapped city of roughly 100,000 on the eastern fringe of the San Francisco Bay area.
Antioch's fiscal woes are standard issue for local governments in California: weak revenue from retail sales and property taxes is forcing spending cuts, layoffs and furloughs.
But cost-cutting measures may not be enough to keep Antioch's books balanced, so its city council is openly discussing bankruptcy."
Actually, this is a good idea--end the union and special interests control of government.
the really good news is that this would stop government from borrowing money, the cause of the debt in the first place.
"A filing for Chapter 9, the part of U.S. bankruptcy code that applies to municipalities could also result in being locked out of the municipal debt market, adding to fiscal trouble.
"We take that very seriously," Amy Doppelt, a managing director at Fitch Ratings, said of how talk of bankruptcy could affect credit ratings."
I hope every government agency files for bankruptcy--it ends the union control and stops spending money they do not have.
More...