Stockton, California approves a spending plan it would use to operate under bankruptcy, moving...

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untrusting investor Comments (9879)
 
Not surprising. Probably more to come in the relatively near future as well.
27 Jun 2012, 03:53 AM Reply Like

DaLatin Comments (1529)
 
Years of collective bargaining and union contracts and as UI says above. Probably many more cities an towns to come. Will Wisconsin be a guide ! Gees, I hope so and politics be darned. Fiscal sanity !
27 Jun 2012, 05:04 AM Reply Like

Abegaz Comments (3437)
 
Collective bargaining and union contracts were never the problem. Those are only signposts along the way that tend to make the end result amplified. Nothing more.

Keep in mind that workers themselves were never to blame for what has happened with the globalization effects. The words "bargaining" and "contracts" should be your first good clues.

There were two parties at the table of course. Both acted with equal self interest and neither gave significant consideration for the long term impacts of pension proposals and benefits. Not management and not unions.

Everyone just kind of assumed it would all equal out in the end.

It did not of course. It won't get better either. A lot of the old contracts will be torn up and shredded long before their terms are met. Wages will decline, unions will be busted up and the old guard management will be retired in favour of a much more savvy bunch of pencil pushers who do understand the future.

So lets not pick on the old guys. They were nursed up on full healthy entitlement systems paid for out of the pockets of their own children and grandchildren.....they just had no idea that is who would actually be paying the bill in the end.
27 Jun 2012, 05:42 AM Reply Like

pokalolo Comments (318)
 
NOT, politicos and there compromises gave pensions an pay beyond the realm of right and wrong ! It will soon be clear that millions of people will not have the pension amounts. Private or public. Can't think of a greedier bunch of people like the yanks !
27 Jun 2012, 08:51 AM Reply Like

User 353732 Comments (3918)
 
Massive income transfers from the fragmented, deceived and uninformed many to the grasping, organized and deceiving few will always consume the income and wealth of a polity whether it is Greece or the municipalities of California.
Stockton and Greece are not the abnorms in the West but the paradigms and harbingers of what must happen when the future is pillaged by the present..
27 Jun 2012, 06:45 AM Reply Like

lyork Comment (1)
 
Can anyone say "Future" bubble.
Atlas shrugged...
27 Jun 2012, 08:52 AM Reply Like