Social and political criticisms
From Moneynews.com
There are three municipalities that have declared bankruptcies in California: San Bernardino, Stockton, and Mammoth Lake.
John Chiang, the state controller said that more bankruptcies are possible.
Why
are so many municipalities in USA more prone to bankruptcies? (I was
talking to a San Jose Calif resident last night that a a city would be
paying its police officers $200,000 a year, and would retire and file
for disability and bet $300,000 a year in pension; these and other
expenses coupled with declining real estate taxes and low economic
activities less revenues, and more negative cash flows.
Maybe the entire local government units finances in the US is to lower costs and seek true level.
What happens if there are more municipalities in US being bankrupt? What are the implications?
