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California edges ever closer

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to bankruptcy....frown.gif

 

http://www.reuters.com/article/idUSTRE64Q6CQ20100527

 

Orange County Treasurer Chriss Street would not be surprised if more local governments across the Golden State sound a similar alarm.

 

Street expects more talk of municipal bankruptcy across California because local government finances are in such dire shape -- a situation underscored on Wednesday when a top finance officer for Sacramento County projected a worse-than-expected shortfall for the county of $181 million, which could force more than 1,000 layoffs from the county's payroll.

 

"You don't have the easy out of increasing revenue and you have a lot more call on services because of the economy," Street said. "There's no such thing as entertaining bankruptcy; there's ending denial."

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View PostAnd they can't raise taxes on rich people because all they'll all leave.

 

What will they do!!!?????!!!!

 

So it's the rich people's fault and nothing to do with unproductive societies, right?

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There is a chapter of the Bankruptcy Code designed for municipalities - Chapter 8. It's mostly been used for special-purpose districts, but there's no legal reason why it couldn't be used for something bigger, like a state.

 

Orange County defaulted on its' debts about 12 years ago. They did not use Chapter 8; they simply refused to pay the bulk of their bills. They might've used a state-code reorganization of some kind.

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Two years after Vallejo, California, filed for bankruptcy protection, officials in nearby Antioch are also tossing around the 'B' word.

 

cwm27.gifcwm27.gifcwm27.gifcwm27.gifcwm27.gif Antioch is a Friggin Cow-town gone wild during the housing Boom.cwm33.gifcwm33.gifcwm33.gif Now when you here Cities like San Francisco, San Diego, Marin, , Palo Alto, Monterey, Napa and Sonoma then its time to Panic?

 

BTW why you so worried about some meaningless Cow-town like Antioch in California thinking about going bankrupt kooky.gifkooky.gifkooky.gif

 

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View PostTwo years after Vallejo, California, filed for bankruptcy protection, officials in nearby Antioch are also tossing around the 'B' word.

 

 

cwm27.gifcwm27.gifcwm27.gifcwm27.gifcwm27.gif Antioch is a Friggin Cow-town gone wild during the housing Boom.cwm33.gifcwm33.gifcwm33.gif Now when you here counties like San Francisco, Marin, San Mateo, Monterey, Napa and Sonoma then its time to Panic?

 

 

BTW why you so worried about some meaningless Cow-town Antioch in California thinking about going bankrupt kooky.gifkooky.gifkooky.gif

 

 

 

Joe, I'm worried about the whole country. So when do you think the rest of the counties will follow the pathetic little cow-town, seriously.

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My Guess would be Towns in the Central Valley where Antioch is located.

The Central Valley here in California is where most of the Agricultural industry is located from north of Sacramento all the way down to almost Los Angeles. During the Housing Boom former citys like Sacramento, Antioch, Lodi, Stockton, Modesto, all started allowing Home Builders Build like Drunken Sailers just like in Las Vegas. So what happened was Middle income Families who no longer could afford the 500K - Million+ homes in the San Francisco Bay Area All started moving east to Sacramento, Antioch, Stockton Etc. During the Boom you could buy a 3000 SF home in Sacramento for around 400K. Compared to Sonoma County, where I lived, you could buy a 1500 SF Town home. In Sonoma and Marin Counties, maybe even in Napa County, Voters some time ago Voted to not allow more than two Homes built on properties designated Agricultural which limited the opportunitys of Home builders to build Massive amounts of Houses like they can in the Central valley. So now my guess is those Po Doc towns like Antioch who Relied on all those TAxes related to the Housing Boom Are in Deep Doo Doo. cwm40.gif

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View PostMy Guess would be Towns in the Central Valley where Antioch is located.

 

The Central Valley here in California is where most of the Agricultural industry is located from north of Sacramento all the way down to almost Los Angeles. During the Housing Boom former citys like Sacramento, Antioch, Lodi, Stockton, Modesto, all started allowing Home Builders Build like Drunken Sailers just like in Las Vegas. So what happened was Middle income Families who no longer could afford the 500K - Million+ homes in the San Francisco Bay Area All started moving east to Sacramento, Antioch, Stockton Etc. During the Boom you could buy a 3000 SF home in Sacramento for around 400K. Compared to Sonoma County, where I lived, you could buy a 1500 SF Town home. In Sonoma and Marin Counties, maybe even in Napa County, Voters some time ago Voted to not allow more than two Homes built on properties designated Agricultural which limited the opportunitys of Home builders to build Massive amounts of Houses like they can in the Central valley. So now my guess is those Po Doc towns like Antioch who Relied on all those TAxes related to the Housing Boom Are in Deep Doo Doo. cwm40.gif

 

Thanks for the local insight and I see what you mean now. wink.gif

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View PostAnd they can't raise taxes on rich people because all they'll all leave.

What will they do!!!?????!!!!

 

 

You're right, the rich (some anyway) can be paying more. Lets start with the most prominent, outspoken liberal democrats of all. Those rich hollywood actors and producers. They're always lecturing others about paying taxes or whatever. How much taxes are they paying to CA?

 

View PostTwo years after Vallejo, California, filed for bankruptcy protection, officials in nearby Antioch are also tossing around the 'B' word.

 

cwm27.gifcwm27.gifcwm27.gifcwm27.gifcwm27.gif Antioch is a Friggin Cow-town gone wild during the housing Boom.cwm33.gifcwm33.gifcwm33.gif Now when you here Cities like San Francisco, San Diego, Marin, , Palo Alto, Monterey, Napa and Sonoma then its time to Panic?

 

BTW why you so worried about some meaningless Cow-town like Antioch in California thinking about going bankrupt kooky.gifkooky.gifkooky.gif

 

 

 

If CA starts asking for federal bailout money then it becomes our business.

 

View PostThanks for the local insight and I see what you mean now. wink.gif

 

 

Do yourself a favor. Read Barrons March 15 cover article, "Investors Beware" and Reason magazine Feb "Class War" you'll get quite a bit different apprasial of CA and it's finances.

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View Post

 

 

Do yourself a favor. Read Barrons March 15 cover article, "Investors Beware" and Reason magazine Feb "Class War" you'll get quite a bit different apprasial of CA and it's finances.

 

Found it, looks like Cal is in a 2 trillion dollar hole, not good.

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View PostAnd they can't raise taxes on rich people because all they'll all leave.

 

What will they do!!!?????!!!!

 

After reading the Baron's article, can't say I'd blame the rich for fleeing.cwm13.gif

 

 

How many billionaires does california have? Because they need 2,000 billionaires willing to surrender all their wealth to cover this deficit. kooky.gif

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View PostAfter reading the Baron's article, can't say I'd blame the rich for fleeing.cwm13.gif

 

How many billionaires does california have? Because they need 2,000 billionaires willing to surrender all their wealth to cover this deficit. kooky.gif

 

In 2010, there were more than 663,000 millionaires in the state, more than any other state in the nation

 

The Golden State is home to 95 Billionaires, out of 946 total worldwide. According to Forbes 2007 Index of World Billionaires.

 

Far Northern California-1 Billionaire

Archie Aldis Emmerson-Anderson $1.6 Billion

 

Central Valley-3 Billionaires

Ernest Gallo-Modesto $1.3 Billion

Alexander Spanos-Stockton $1.1 Billion

Joyce Raley Teel-Sacramento $1.1 Billion

 

Los Angeles Area-42 Billionaires

Kirk Kerkorian-Los Angeles-$15 Billion

Donald Bren-Newport Beach $8.5 Billion

Sumner Redstone-Beverly Hills $8.0 Billion

Eli Broad-Los Angeles $6.0 Billion

Bradley Hughes-Malibu $5.3 Billion

David Geffen-Los Angeles $4.7 Billion

David Murdock-Los Angeles $4.2 Billion

Jeffrey Skoll-Los Angeles $4.2 Billion

Patrick Soon-Shiong-Los Angeles $3.5 Billion

Steven Udvar-Hazy-Beverly Hills $3.2 Billion

A. Jerrold Perenchio-Bel Air $3.0 Billion

Steven Spielberg-Pacific Palisades $3.0 Billion

Haim Saban-Beverly Hills $2.8 Billion

Roland Arnall-Holmby Hills $2.5 Billion

Ronald Burkle-Los Angeles $2.5 Billion

Alfred Mann-Los Angeles $2.5 Billion

Henry Nichols III-Laguna Hills $2.2 Billion

Franklin Booth Jr-Los Angeles $2.1 Billion

Michael Milken-Beverly Hills $2.1 Billion

Henry Samueli-Newport Beach $2.1 Billion

Tom Gores-Beverly Hills $2.0 Billion

David Hearst Jr-Los Angeles $2.0 Billion

George Hearst Jr-Los Angeles $2.0 Billion

Anthony Pritzker-Los Angeles $2.0 Billion

John Anderson-Bel Air $1.9 Billion

Charles Munger-Los Angeles $1.9 Billion

Edward Roski Jr-Los Angeles $1.8 Billion

George Aryros-Newport Beach $1.7 Billion

Louis Gonda-Beverly Hills $1.7 Billion

Alan Casden-Beverly Hills $1.6 Billion

Igor Olenicoff-Newport Beach $1.6 Billion

Leslie Gonda-Beverly Hills $1.4 Billion

Gary Michelson-Los Angeles $1.4 Billion

Robert Day-Los Angeles $1.3 Billion

Roy Disney-Los Angeles $1.3 Billion

William Hilton-Los Angeles $1.3 Billion

Timothy Blixseth-Rancho Mirage $1.2 Billion

Alec Gores-Beverly Hills $1.2 Billion

William Gross-Laguna Beach $1.2 Billion

George Joseph-Los Angeles $1.1 Billion

Jonathan Lovelace-Los Angeles $1.1 Billion

Michael Eisner-Los Angeles $1.0 Billion

 

Santa Barbara County-1 Billionaire

Thomas Barrack-Santa Barbara $1.0 Billion

 

San Diego Area-4 Billlionaires

Ernest Rady-San Diego $2.2 Billion

Charles Brandes-San Diego $2.0 Billion

Irwin Jacobs-La Jolla $1.7 Billion

Theodore Waitt-San Diego $1.7 Billion

 

San Francisco Bay Area-44 Billionaires

Lawrence Ellison-Woodside $21.5 Billion

Sergey Brin-Palo Alto $16.6 Billion

Larry Page-San Francisco $16.6 Billion

Eric Schmidt-Atherton $6.2 Billion

Steve Jobs-Palo Alto $5.7 Billion

Charles Johnson-San Mateo $5.6 Billion

Charles Schwab-Atherton $5.2 Billion

Rupert Johnson Jr-San Mateo $4.6 Billion

George Lucas-Marin $3.6 Billion

Gordon Moore-Woodside $3.6 Billion

Riley Bechtel-San Francisco $2.7 Billion

Steven Bechtel Jr-San Francisco $2.7 Billion

George Roberts-San Francisco $2.6 Billion

Ray Dolby-San Francisco $2.5 Billion

David Filo-Palo Alto $2.5 Billion

John Sobrato-Atherton $2.4 Billion

Gordon Getty-San Francisco $2.3 Billion

Jess Jackson-Healdsburg $2.2 Billion

Jerry Yang-Los Altos $2.2 Billion

William Randolph Hearst III-San Francisco $2.1 Billion

Omid Kordestani-Atherton $2.1 Billion

Phoebe Hearst Cooke-San Francisco $2.0 Billion

Daniel Pritzker-Marin $2.0 Billion

John Pritzer-San Francisco $2.0 Billion

Andreas von Bechtolsheim-Palo Alto $1.9 Billion

John Morgridge-Portola Valley $1.8 Billion

Kavitark Shriram-Mountain View $1.7 Billion

John J Fisher-San Francisco $1.5 Billion

Robert Naify-San Francisco $1.5 Billion

Thomas Siebel-San Mateo $1.5 Billion

David Cheriton-Mountain View $1.4 Billion

Scott Cook-Woodside $1.4 Billion

Robert Fisher-San Francisco $1.4 Billion

William Fisher-San Francisco $1.4 Billion

Carl Berg-Atherton $1.3 Billion

Kenneth Fisher-Woodside $1.3 Billion

Manny Mashouf-Brisbane $1.3 Billion

Margaret Whitman-Atherton $1.3 Billion

Marc Benioff-San Francisco $1.0 Billion

Weili Dai-Los Altos Hills $1.0 Billion

L John Doerr-Woodside $1.0 Billion

Richard Perry-Palo Alto $1.0 Billion

Arthur Rock-San Francisco $1.0 Billion

Sehat Sutardja-Los Altos Hills $1.0 Billion

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View PostFound it, looks like Cal is in a 2 trillion dollar hole, not good.

 

 

Nope, not good. Not exactly a Friggin Cow-town, is it.

 

View PostAfter reading the Baron's article, can't say I'd blame the rich for fleeing.cwm13.gif

 

How many billionaires does california have? Because they need 2,000 billionaires willing to surrender all their wealth to cover this deficit. kooky.gif

 

 

They don't have to flee, just go through a retraction. In NY they were deep in red ink well before the 08 panic. The state was heavily dependent upon a small minority of taxpayers. A downturn in the economy, especially on Wall Street hit them hard.

 

IMO disproportionate dependance upon very high income tax payers is like investing all your money into high growth stocks. It's great when the economy is rising but when it retracts. icon24.gif Even some Dems in CA are starting to realize that.

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View PostFound it, looks like Cal is in a 2 trillion dollar hole, not good.

 

headscratch.gifheadscratch.gifheadscratch.gifheadscratch.gifheadscratch.gifheadscratch.gif

 

New York is one of the states at highest risk of default and budget cuts are coming. However, for now, those cuts will be limited to service cuts, dismissals and furloughs. Public sector pensions remain an intractable issue that will move center stage when states and municipalities in the US realize that they can't meet budget cuts without making adjustments to gold-plated pension plans. Public sector unions are outraged, the New York Times reports.

In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with a base pay of about $74,000 a year. His pension is now $101,333 a year.

It's what the system promised, said Mr. Tassone, now 47, adding that he did nothing wrong by adding lots of overtime to his base pay shortly before retiring. "I don't understand how the working guy that held up their end of the bargain became the problem," he said.

Mr. Tassone's ability to draw a pension at 44 which is now more than 25% above his final salary speaks to the problem. The New York Times cite analysts who calculate that state and local officials have made promises worth $5 trillion in public pensions to their employees. However, they have only committed taxpayers to half this amount.

 

Read more: http://www.businessinsider.com/new-y...#ixzz0oYnvr6X7

 

 

Reading the above one might conclude that New York State owes 5 trillion. But its not as it seems and the same thing goes with the cover of the March 15 Barrons.

 

"The $2 Trillion Hole"

 

LIKE A CALIFORNIA WILDFIRE, populist rage burns over bloated executive compensation and unrepentant avarice on Wall Street.

Deserving as these targets may or may not be, most Americans have ignored at their own peril a far bigger pocket of privilege -- the lush pensions that the 23 million active and retired state and local public employees, from cops and garbage collectors to city managers and teachers, have wangled from taxpayers.

 

 

Some might want you to believe that "LIKE A CALIFORNIA WILDFIRE"

means the article is all about California's Economic Problems cwm27.gifcwm27.gifcwm27.gifcwm27.gif California is not on the hook for all the $2 Trillion. If you actually read the thing, The 2 Trillion is what all the States combined owe to their pension funds cwm40.gif

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View Postheadscratch.gifheadscratch.gifheadscratch.gifheadscratch.gifheadscratch.gifheadscratch.gif

 

 

New York is one of the states at highest risk of default and budget cuts are coming. However, for now, those cuts will be limited to service cuts, dismissals and furloughs. Public sector pensions remain an intractable issue that will move center stage when states and municipalities in the US realize that they can't meet budget cuts without making adjustments to gold-plated pension plans. Public sector unions are outraged, the New York Times reports.

In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with a base pay of about $74,000 a year. His pension is now $101,333 a year.

 

 

It's what the system promised, said Mr. Tassone, now 47, adding that he did nothing wrong by adding lots of overtime to his base pay shortly before retiring. "I don't understand how the working guy that held up their end of the bargain became the problem," he said.

 

 

Mr. Tassone's ability to draw a pension at 44 which is now more than 25% above his final salary speaks to the problem. The New York Times cite analysts who calculate that state and local officials have made promises worth $5 trillion in public pensions to their employees. However, they have only committed taxpayers to half this amount.

 

 

Read more: http://www.businessinsider.com/new-y...#ixzz0oYnvr6X7

 

 

Reading the above one might conclude that New York State owes 5 trillion. But its not as it seems and the same thing goes with the cover of the March 15 Barrons.

 

 

"The $2 Trillion Hole"

 

 

LIKE A CALIFORNIA WILDFIRE, populist rage burns over bloated executive compensation and unrepentant avarice on Wall Street.

 

 

Deserving as these targets may or may not be, most Americans have ignored at their own peril a far bigger pocket of privilege -- the lush pensions that the 23 million active and retired state and local public employees, from cops and garbage collectors to city managers and teachers, have wangled from taxpayers.

 

 

Some might want you to believe that "LIKE A CALIFORNIA WILDFIRE"

 

 

means the article is all about California's Economic Problems cwm27.gifcwm27.gifcwm27.gifcwm27.gif California is not on the hook for all the $2 Trillion. If you actually read the thing, The 2 Trillion is what all the States combined owe to their pension funds cwm40.gif

 

Yes , I read it, unfunded liabilities.....so where's Cal gonna get the $ to meet those future liabilities, the tooth fairy. cwm27.gif

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