Latest Breaking News

seabeckind

(1,957 posts)

63. Why is there a bankruptcy?

Thu Oct 2, 2014, 10:09 AM

Oct 2014

Because of the pensions?

No.

Because: "Before the recession, Stockton leaders spent millions of dollars revitalizing the downtown area with a new City Hall and building a marina, sports arena and ballpark. The city issued about 3,000 permits annually to build new homes, and it paid police premium wages and health benefits."

Sounds like the republican gov't model. Funnel value from the public sector to the private sector and mortgage the public sector to do it. Win-win. The "creditor" gets a nice fat commission, repeatedly because of refi's, and then when no more refi's are possible, raid the only thing left that has any value.

Romney would be proud...that's his business model.

Locally the city sold its water facility to a private company for many millions. Now it's running around looking for ways to "invest" that money in the future.

Here I thought owning a water facility IS a good investment for the future. But, hey, what do I know? They decided to go for a multiuse sports facility. Traded land owned by the schools in a desireable development area to a developer for some farmland out in the nether regions --- oh and included some nice tax free benefits to the developer to "sweeten" the deal. I guess if the school needs to expand we can just go eminent domain some more land and buy some more buses.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

67 replies

= new reply since forum marked as read

Highlight:

CalPERS gets dreaded decision: Judge rules Stockton can sever its city pensions [View all] Newsjock Oct 2014 OP

People who have paid in should receive benefits.... pipoman Oct 2014 #1

The investors paid in too. nt Dreamer Tatum Oct 2014 #2

They did, but . . . StatGirl Oct 2014 #6

It's called the law, not a Democratic principle. Dreamer Tatum Oct 2014 #10

Are these the same "investors" that got bailed-out in 2008? KansDem Oct 2014 #12

Obviously not. nt Dreamer Tatum Oct 2014 #13

So no one connected with Wall Street had investments in CALPers? KansDem Oct 2014 #19

investors take a risk CreekDog Oct 2014 #35

except those funds are invested. nt Dreamer Tatum Oct 2014 #41

Hell, let's keep the race to bottom in full throttle! NutmegYankee Oct 2014 #3

You said it, my friend. senseandsensibility Oct 2014 #4

Benefit plans exist to add benefits to working pipoman Oct 2014 #54

Because defined pensions are good for workers, 401Ks good for the thieves that rob workers. n/t jtuck004 Oct 2014 #8

Absolutely! Veilex Oct 2014 #15

If a defined benefit pension obligation can be massively decreased in BK court (like this rulling) kelly1mm Oct 2014 #36

Defined benefits don't prevent stupid business decisions, or indebting your city for more than jtuck004 Oct 2014 #56

My longest stint at any one company (actually the .gov) was 7 years. My pension kelly1mm Oct 2014 #57

But lawyers who wanted to stick their hands in their money wrote in the advantagous terms you jtuck004 Oct 2014 #58

I certainly agree with your last sentence. We truely do live in interesting times! nt kelly1mm Oct 2014 #60

Yeah, no.... pipoman Oct 2014 #53

But I have to live in this reality, where we don't have "...401k, properly managed...". jtuck004 Oct 2014 #55

AT&T still have pensions for their managers and tech's. My husband is under (I think) 5 different Hestia Oct 2014 #66

Had enough yet?! Earth_First Oct 2014 #5

You have no idea what will happen if this ballyhoo Oct 2014 #7

It will stand, and you will see more across the country over the next few years. jtuck004 Oct 2014 #9

This is why the government has wanted to take away ballyhoo Oct 2014 #14

where has the gov't stated... dhill926 Oct 2014 #16

I'll let google handle your question. Pack some ballyhoo Oct 2014 #17

Crackers, Cheez Wiz and a 6 pack of Old Milwaukee ok? dhill926 Oct 2014 #22

You'll need to wear a special hat. enki23 Oct 2014 #46

Yep. WTF? CTyankee Oct 2014 #20

Lets say you are right. Hoppy Oct 2014 #24

I'm a teamster on a withdrawal ballyhoo Oct 2014 #26

I agree there is and will be anger. But there is no place to focus that anger. Hoppy Oct 2014 #29

That's because the 1% work hard to keep the anger focused at the wrong people. NutmegYankee Oct 2014 #31

There are plenty of places for the aggrieved to ballyhoo Oct 2014 #32

"It's a big club, and you ain't in it." RufusTFirefly Oct 2014 #33

Another Detroit to be fleeced and sold to the lowest bidder. blkmusclmachine Oct 2014 #27

Just like they took down other jurisdictions when the same thing happened? Hoppy Oct 2014 #28

Any place else but where it is happening, maybe. The City of Stockton could probably ballyhoo Oct 2014 #34

"...the way a bankrupt retail chain can exit a bad lease at a shopping center. " KansDem Oct 2014 #11

I feel like we're living in 1930's Germany some days. blkmusclmachine Oct 2014 #18

Wow. Ruby the Liberal Oct 2014 #21

That is correct NV Whino Oct 2014 #25

California Public Employes don't pay into social security. They pay into CALPERS, which ballyhoo Oct 2014 #30

You are wrong Fiendish Thingy Oct 2014 #39

You are right. I couldn't find the CALPERS site I ballyhoo Oct 2014 #42

Not true tularetom Oct 2014 #51

Yes. I know. See post 42. ballyhoo Oct 2014 #52

Depends Fiendish Thingy Oct 2014 #38

You are right. I explained in prior post to you. ballyhoo Oct 2014 #43

With Citizens United, a mayor can accept a million dollar campaign contribution in exchange McCamy Taylor Oct 2014 #23

But if the investment company is on the ball Crash2Parties Oct 2014 #62

Cities have been underfunding pensions for years Travis_0004 Oct 2014 #37

Fund the Pensions and Use a Reasonable Rate of Return on Investments branford Oct 2014 #50

It's wage theft. Starry Messenger Oct 2014 #40

Exactly. But that may not work right now-- ballyhoo Oct 2014 #44

I know, we need to light a fire under some asses for this round. Starry Messenger Oct 2014 #45

I've thought about this myself more than once, Starry. It's maddening. freshwest Oct 2014 #47

The answer is no. former9thward Oct 2014 #61

This makes me sick A Little Weird Oct 2014 #48

We are retired on calpers marlakay Oct 2014 #49

I have been paying into Pers for onecaliberal Oct 2014 #59

Why is there a bankruptcy? seabeckind Oct 2014 #63

This must be for future retirees Fiendish Thingy Oct 2014 #64

The "people" get the shaft again. nt ladjf Oct 2014 #65

We have to start calling pensions "deferred compensation" yurbud Oct 2014 #67