Monday, December 27, 2010

Life in "Progress" City - the bankruptcy edition

Name a city where the bankruptcy courts are just waiting for them to show up.

Chances are really, really, good that a democratic mayor will be at the helm..........

Have a gander at America’s 17 most-bankrupt cities, and consider the party variable: Two Republican mayors, two independents, one city so bankrupt that it is in state receivership — and twelve Democratic mayors, meaning the Democrats lead 70.5 percent of the most-bankrupt cities, by my always-suspect English-major math.

And you thought their record was bad in Congress.

And get a load of the size of these budget shortfalls: Camden, N.J., at 15 percent, Hamtramck, Mich., at 17 percent, Paterson, N.J., at 24 percent, Central Falls, R.I., at 22 percent.

The state of California cannot afford to bail out San Francisco, Los Angeles, San Diego, and San Jose; the state of Illinois cannot afford to bail out Chicago and Joliet; New Jersey cannot afford to bail out Camden, Patterson, and Newark. The outstanding municipal-bond obligations are huge. Vero has some thoughts here, and here’s one sleep-disturbing fact:

But municipal bonds have not yet lost their low-risk reputation. According to the Investment Company Institute, $84 billion went into long-term municipal bond mutual funds in 2010, up from $69 billion in 2009. And the 2009 level represents a 785 percent increase from the 2008 level of $7.8 billion. Artificial incentives have lured investors into thinking that lending cash to bankrupted cities will be profitable.

New Jersey already has been accused of fraud for running what amounts to a muni-bond Ponzi scheme.

Questions: Why do city voters continue to elect these mayoral specimens? .....

Nice to see that the Queen City of Cincinnati made the list.

That's been the genesis of this blog. While I have some chicken/egg theories, I'll probably keep doing this blog until someone answers the question. Is it the lack of intelligence voters who keep putting democrats in office or is it democratic policies that create ignorant democratic voters?

As Charles Barkley would say "how is it that poor people keep voting for democrats and they stay poor?"


1 comment:

Anonymous said...

The best thing that can happen for this country is for governments to proactively cut until they can balance. Since that will never happen in a million years, the second best thing is for governments to go bankrupt so they will reactively cut. Look for a wave of public bankruptcies in the next 2 years. When the public comes to the realization that they can't/won't get any more government help, look for 50 years of growth and prosperity.