A Chapter 9 bankruptcy by the city of nearly 300,000 (Stockton, CA) [View all]

[SoCalDem]

http://in.reuters.com/article/2012/06/27/economy-stockton-idINL2E8HQ3XU20120627
* Stockton has $700 mln outstanding debt

By Jim Christie

STOCKTON, Calif., June 27 (Reuters) - Stockton, California will become the largest U.S. city to seek protection from its creditors after its leaders approved a budget on Tuesday night based on the city filing for bankruptcy.

A Chapter 9 bankruptcy by the city of nearly 300,000 in California's Central Valley, about 85 miles (135 km) east of San Francisco, could come as early as Wednesday.

Stockton's city council voted six to one in favor of the 2012-2013 budget after a contentious five-hour meeting where angry retired city workers pressed council members to reject the $155 million spending plan. It proposes eliminating retirees' medical benefits to help fill a $26 million budget deficit.

Retired police department employee Geri Ridge said she fears not being able to afford health-care insurance. "I don't have that kind of income," said Ridge, 56, noting she is concerned a large share of her $1,895 monthly pension payment could be consumed by large insurance costs due to her history of heart attacks.

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ONE city with 700 million in debts..WTF..
Multiply this by all the other US cities that have been starved by Bush and then crushed again by the depression/recession, and we have a HUGE problem.

There is NO way these debts can be repaid, no matter how many retirees they kill off (by cutting off health care they EARNED)