If you read this and reduce it to our situation, you'll notice that there are scary similarities. Maybe on a smaller scale. (Jim Wagner)
Wall Street Journal/Review and Outlook/Top Stories in Opinion, 12/31/12. "Stockton tries a Chrysler"
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| Bankruptcy: creditors/bond holders vs. unions/pensions |
The San Joaquin Valley's second largest city filed for Chapter 9 bankruptcy this summer after a three-month mediation with creditors and unions ended in stalemate. Bond insurers that guarantee about $200 million in debt wouldn't submit to a haircut unless the rich pensions that helped drive the city to bankruptcy were also clipped. Yet unions wouldn't countenance an even modest reduction to their pensions.
.... Ratings agencies downplay the "systemic risk" that the Stocktons of the United States pose to the $3.7 trillion municipal bond market. But then they also said mortgage-backed securities were Triple-A. While the market may not be in danger of blowing up soon, bondholders face a very real danger of being blown off to preserve worker pensions. Blocked link to "buy a subscription". To read the full article, try web search "Stockton Wall Street Journal article".
Related Fix Pacifica articles - Stockton bankruptcy, and Bankruptcy.
Submitted by Jim Wagner
Posted by Kathy Meeh
13 comments:
Pacifica has over 15 employees making over $200,000 total wages and benefits. Over 60 employees making over $100,000. And despite what we were told by Council, no big cuts occurred in 2011. In fact we spent over $200,000 more on worker compensation in 2011. Our elected officials are lying to us while we head down the sewer.
http://publicpay.ca.gov/Reports/Cities/City.aspx?entityid=437&fiscalyear=2011
Oink, oink, oink...pigs at the public trough...and how stupid are we to believe anything any of them say! They feel entitled and impervious. When the city finally collapses, it'll be oops, we tried, if only the public hadn't unplugged the cash machine. Expect the more cunning among them to have left the scene well before the end. Busy, busy, gotta motor.
House of cards. One big, interlinked house of cards.
The politicans saved the country from going over the fiscal cliff, but who is going to save Pacifica from going off the really big fiscal cliff.
Oh I forgot the grand plan to turn Palmetto into the new downtown.
Did council lie to us about big wage cuts in 2011? What is going on with current union negotiations? What happened to the police outsourcing report we paid for? Why doesn't the Tribune follow up on any of this?
Tribune? Follow up? Hahahahaha.
Hutch, A)Have we been misled on paycuts? Sure looks like it. The bumbs didn't even make good on reducing their share of the heist. And, when they bragged about cuts to employee pay they must have been talking about reducing negotiated future contract increases because current payroll has not been reduced. B)It's all very lovey dovey with the unions, ie, we're screwed. C) Outsourcing report? Too controversial for an election year, and, oh look! it was cleverly buried forever behind attorney/client privilege and that took some planning and foresight. Who knew they had it in them? D) The Trib doesn't do investigative journalism. More's the pity although it would be a story of continuous bumbling ineptitude rather than malfeasance, don't you think? Maybe not enough drama in that.
oh hutch, really, you gotta ask did council lie? do dogs take a dump on the beach? some more than others. there you go.
anon 809am yeah, why on earth would anyone go to Palmetto for anything? junk stores, recology and the resource center and that's the good part.
9:38
Don't forget the trailer park
The whole street is low-end and much of the surrounding area too. Council can click their heels together all they want but that's not going to change Palmetto.
Anonymous said...
anon 809am yeah, why on earth would anyone go to Palmetto for anything?
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Look at the police blotter. A lot less crime in Sharp Park than Linda Mar. So tell me again which one is more ghetto? Haha.
Sharp Park is more ghetto, particularly Palmetto, which was the issue. Sounds like you live there. Sorry about that.
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