October 3, 2011 12:22 PM Subscribe
posted by bswinburn (17 comments total)
6 users marked this as a favorite
newest piece of financial disaster tourism came out a few days ago, relating his take on California's Bond problems. Some
think that he didn't interview the right experts in the field and that the lesson of the city of Vallejo have already been internalized by city managers.
of the Bankruptcy code, governing municipal bankruptcies has been used less than 600 times since 1937. This means that the case law is still relatively undeveloped. Only in 2009 did it become clear that municipalities could void union contracts for public workers
There is something like a half trillion
unfunded pension liability in California as of 2010. Fix Pensions First
believes that California's budget problems need to be solved by revamping the pension system.
California has a sad history of only solving problems under court order
, a response to this court order
, came into effect Oct 1st, 2011 and starts sending many prisoners to county facilities instead of prisons.
States, as opposed to municipalities, cannot file for bankruptcy
. But some people
would like them to be able to.
What's unclear is if a State could push down its liabilities to municipalities, allow them to fail, and allow them to petition for Chapter 9 relief. Such a plan may, effectively, be a State level bankruptcy.
One thing that is clear is that metafilter loves Michael Lewis