I’ve read many stories taking shots at Meredith Whitney for her prediction of municipal defaults. The idiots doing a touchdown dance like Terrell Owens are celebrating prematurely. The fiscal condition of cities across the country are deteriorating rapidly. Ben Bernanke is contributing greatly to their woes with his zero interest rates. The pension obligations of these cities become worse by the day. If you are a government worker with a pension, I’d suggest you start saving now. You will not be getting that big fat pension they promised you. So Solly.
Meredith Whitney was early with her prediction, but as with those who saw the mortgage collapse two or three years before it happened (Eismann, Burry), she will be right.
Harrisburg, Pennsylvania, Files for Bankruptcy, Lawyer Says
October 12, 2011, 2:11 AM EDTOct. 12 (Bloomberg) — The city of Harrisburg, Pennsylvania, facing a state takeover of its finances, filed for bankruptcy protection following a vote by City Council, according to a lawyer for the council.
Mark D. Schwartz, a Bryn Mawr, Pennsylvania-based lawyer and former head of municipal bonds for Prudential Financial Inc.’s mid-Atlantic region, said he filed the documents by fax to a federal bankruptcy court last night. The filing couldn’t be confirmed with the U.S. Bankruptcy Court in Harrisburg.
The state capital of 49,500 faces a debt burden five times its general-fund budget because of an overhaul and expansion of a trash-to-energy incinerator that doesn’t generate enough revenue.
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2 comments:
This is just one of many cities that are currently going down.
I'll tell you something else - Salisbury isn't in the best of shape either.
And if Rick doesn't get his act in gear - Wicomico will follow suit shortly. Rick has also been raiding the County pension fund and thus leaving the 'fire' for someone else to fight after he is long gone.
I knew this was going to happen - - Meredeth Witney was on point when she issued the municipal default warnings.
Stop trying to scare the sheeple. Everything will be all right. The government knows what's best and they will take care of it, even if it means stiffing the vendors and citizens of their payments for services, supplies, and pensions. Which will be GREAT for the economy and "we, the people". The good news is that the same legislators who spent all the money (knowing they didn't have it) will STILL run for re-election and WIN! Better buy more weapons and ammo. And a solar powered generator. This train is going to wreck and if you don't believe it, you ain't paying attention. Maybe voting will help.
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