Municide

MUNICIDE Alert: Detroit is NOW the Largest Municipal Bankruptcy in U.S. History

  by John Galt July 18, 2013 17:30 ET   Complete filing below:   Detroit Chapter 9 Bankruptcy Filing First it was going to be Jeffferson County, AL ranking as the worst municipal bankruptcy in U.S. history: MUNICIDE: Jefferson County Alabama Files Largest Municipal Bankruptcy in U.S. History Then it was going to be San Bernandino in California which was supposed to cause a domino effect in the Golden State: Another Municide: San Bernadino, CA votes to seek Bankruptcy Protection Which of course was followed by the next largest municipal bankruptcy…

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MUNICIDE Alert: Stockton Bankruptcy to proceed, Largest City to File in History

  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, Klein said Stockton’s bondholders had failed…


Another Municide: San Bernadino, CA votes to seek Bankruptcy Protection

  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 dire financial straits:   Penman said…


Municide Update: Apparently the first (of many to come) Public Pension Fund filed for Bankruptcy Today

by John Galt April 19, 2012 19:15 ET   In 2008, I wrote a piece titled “Municide” (Click on link to read in full) where I outlined the coming collapse of many counties, cities, and other municipal entities due to the implosion of the municipal bond market thanks to the collapse of the real estate market. Data today indicates that the housing market is far from recovering, especially considering that institutions like Bank of America saw a stunning 72% decline from last years mortgage origination according to their recently released quarterly…


3.27 Municide Update: Now the Sheep can be Sheared

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 that it shall soon lose that…


The AMR Bankruptcy is causing a Mini-Municide as AMR backed Municipal Issues Hit

By John Galt November 29, 2011 – 17:40 ET Just when everyone thought the Jefferson County, AL Chapter 9 Bankruptcy filing  would be the last Municide of the year, here comes American Airlines’ parent company, AMR Inc., and their filing  for Chapter 11 bankruptcy protection this morning. From Bloomberg: AMR-Backed Municipal Airport Debt Falls on American Air Parent Bankruptcy By Darrell Preston and Martin Z. Braun – Nov 29, 2011 5:01 PM ET <Excerpted> AMR and American sold tax-exempt securities called special- facilities bonds through airports and municipal authorities to pay…


MUNICIDE: Jefferson County Alabama Files Largest Municipal Bankruptcy in U.S. History

By John Galt November 9, 2011 – 18:45 ET From Bloomberg: Jefferson County Files Biggest U.S. Municipal Bankruptcy By Steven Church, William Selway and Dawn McCarty – Nov 9, 2011 5:46 PM ET Jefferson County, Alabama, filed the biggest U.S. municipal bankruptcy after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart. The county, home to Birmingham, the state’s most-populous city, listed assets and debt of more than $1 billion in Chapter 9 papers filed today in U.S. Bankruptcy Court in Birmingham. The county’s…


Municide Update: By the way, Jefferson County, AL Bankruptcy option is back on the table

By John Galt November 9, 2011 – 06:25 ET With all the fun we’ve been having in the news, this blurb from Reuters went ignored by the mainstream media: Alabama’s Jefferson County again eyes bankruptcy filing So after all the “negotiating” and promises of working something out, the story that just won’t die until it goes to court is back. From the article: County commissioners are scheduled to vote on one of three ways to resolve the county’s soured sewer debt: accept a negotiated agreement when returned by creditors, accept it…


Municide Update: Central Falls, RI Files for Chapter 9 Bankruptcy

By John Galt August 1, 2011 And another one bites the dust. From Fox Business Channel: Rhode Island City Files For Bankruptcy;Cites Labor Costs By Kelly Nolan Published August 01, 2011 Dow Jones Newswires –State-appointed receiver immediately reduces health benefits –Receiver also seeks court permission to void union contracts –State law protects general-obligation bondholders from default (Adds details on bankruptcy and comments from state-appointed receiver in first-fifth paragraphs; adds no market reaction details and analyst comments in 11th and 12th paragraphs; and details on local government bankruptcies filings in 14th paragraph.)…


More Municide: Oakridge Oregon the Latest City to Implode

By John Galt July 23, 2011 From KVAL News out of Eugene, OR: Funny how the small towns are impacted by a cash flow crisis yet in many states the ability to bury the problem by having the states save their bacon yet the media rarely if ever covers the larger events because there is a fear of triggering a panic again in the municipal bond markets. This problem in Oakridge, Oregon is neither unique nor new to small town America. This is a growing issue and as the Federal government…


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Follow up Story on ChiCom Local Debt: Chinese Bank Bailout almost Inevitable

By John Galt July 4, 2011 The story I posted last week on the debt threat from the insane borrowing and accounting practices of Communist China’s regional and local governments has now gone full circle with Marketwatch publishing a story tonight on that very subject and how analysts are almost certain it will require the Chinese banking system to be bailed out in the future. In the story, China Debt woes point to bank bailout by Chris Oliver, he offered the following astute analysis from Dong Tao of Credit Suisse: Credit…


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Municide

Municide By John Galt February 21, 2008 How the Suicidal Fiscal Behavior of Government at every level, Federal, State and Local will Crash the US Financial Markets “….In a report to the City Council last week, City Manager Joseph Tanner said the city faces a $10.1 million general fund operating deficit for the current fiscal year and a negative available fund balance of $5.9 million on June 30, 2008. “Based upon the updated financial projections, the current estimate for insolvency is late April 2008,” Tanner said. “It may become necessary for…


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