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City Going Bankrupt

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February 19, 2008 – Comments (9)

Well, they say that it is only a small percentage of municipalities that end up going bankrupt, but news about one on the verge of bankrupcies isn't going to help the troubled markets...

http://www.nbc11.com/news/15345539/detail.html

"The city of Vallejo is on the brink of becoming the first California city ever to declare bankruptcy, City Council members said Tuesday."

Click the link to read the rest of the article. 

 

9 Comments – Post Your Own

#1) On February 19, 2008 at 7:27 PM, DemonDoug (71.12) wrote:

this isn't gonna help the muni bond market.

btw, all the credit markets are linked.  stuff like this will eventually make it's way into, say, mortgage rates. :)

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#2) On February 19, 2008 at 7:51 PM, xthecritic (49.86) wrote:

The first?  I thought orange county declared bankruptcy 15 or 20 years ago.

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#3) On February 19, 2008 at 7:55 PM, xthecritic (49.86) wrote:

I guess the difference is City vs. County in that article.  Here is the story on Orange County if there is any interest.

"In December 1994, Orange County stunned the markets by announcing that its investment pool had suffered a loss of $1.6 billion. This was the largest loss ever recorded by a local government investment pool, and led to the bankruptcy of the county shortly thereafter."

 

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#4) On February 19, 2008 at 8:15 PM, dwot (45.35) wrote:

Orange county ended up restructuring their debt.

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#5) On February 19, 2008 at 8:18 PM, camistocks (< 20) wrote:

Just as a comparison: Orange County has a population of 2.9 million, Valejo a population of 125'000.

Instead of walking away, isn't it just better to https://www.lowermybills.com/

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#6) On February 19, 2008 at 8:20 PM, camistocks (< 20) wrote:

Ah, again: http://www.lowermybills.com/

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#7) On February 19, 2008 at 8:32 PM, NeroSagetrade (90.58) wrote:

And there are 8-10 more cities in CA that should go bankrupt within the next decade because they dont know how to add or subtract. =)

Nero

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#8) On February 19, 2008 at 9:29 PM, dwot (45.35) wrote:

http://seekingalpha.com/article/65196-housing-is-it-going-to-get-worse-before-it-gets-better?source=feed

Excellent post explaining the timing on the mortgage foreclosures and why bank losses from foreclosure will not peak until 2009-2010. 

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#9) On February 19, 2008 at 10:39 PM, abitare (33.88) wrote:

First not last.

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