by John Galt April 1, 2013 16:25 ET Ka-BOOM! Way back in 2008, I warned that eventually and to be honest, I thought sooner, cities and counties would begin to seek Chapter 9 Bankruptcy protection in record numbers in an old article titled “Municide.” Today a Federal Bankruptcy Judge has ruled that the filing can proceed and that creditor’s objections were without merit. What was more astonishing was his declaration per this excerpt from the Reuters‘ story: In a lengthy preamble to his ruling,…
by John Galt July 11, 2012 05:15 ET The third California city with financial difficulties in the last 2 weeks alone has elected to seek Chapter 9 Bankruptcy protection as San Bernandino, CA (Pop. 292,000) plans to file to avert missing the next payroll deadline for its employees on August 15th. The article covering this proposed filing from Bloomberg BusinessWeek has a very interesting quote via City Attorney James Penman however, which adds to the traditional twist of why so many communities are in…
by John Galt June 27, 2012 05:20 ET As per my original article titled “Municide” from 2008 and the warnings of Meredith Whitney, the specter of a massive wave of municipal bankruptcies may have been delayed by the Federal Government’s largess but the inevitable can never be prevented when the math does not work. With outrageous pension obligations and plunging revenues due to the housing crash in addition to insane spending by city and county governments who think they have little kingdoms impervious…
by John Galt March 27, 2012 22:45 ET As has been the habit of the U.S. banksters, the sheep have been herded into another bubble which is about to implode and shear them once again. The media spend the majority of 2011 incessantly attacking Meredith Whitney and her prediction of a municipal bond catastrophe without even taking a moment to analyze the underlying condition of the various locations at risk. Jefferson County, Alabama proved to be the largest implosion in history but it would appear…
By John Galt August 8, 2011 – 08:18 ET In 2008 I penned an article titled “Municide” (click on title to read) which outlined the danger for municipalities, counties, and states which created their future budgets based on totally unrealistic economic projections based in large part on the real estate bubble. The process has been slow, grinding, and delayed thanks to a Federal government bailout in 2009, but it is continuing with many localities teetering on the edge of disaster but now without the states…
By John Galt August 4, 2011 15:38 ET Think J.P. Morgan is relieved? Alabama county expects to delay bankruptcy vote Updated 8/4 22:15 ET: And they punted until August 12 at 9 a.m. Still no decision in JeffCo sewer crisis, another meeting set
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