"If Detroit isn't too big to fail, is any city?" asks the WSJ. There's Oakland, "Detroit's...


"If Detroit isn't too big to fail, is any city?" asks the WSJ. There's Oakland, "Detroit's doppelganger on the West Coast," where 100 police were laid off recently to fund retirement benefits and pension-obligation bonds despite high crime. Philadelphia spends about 20% of its budget on pensions, while Chicago Public Schools is firing 2,100 people due to a $400M rise in retirement payments. "The pension crisis is no longer around the corner," said Mayor Rahm Emanuel. "It has arrived at our schools."
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Comments (6)
  • june1234
    , contributor
    Comments (4408) | Send Message
     
    $3 trillion worth of muni debt out there. As rates rise there will be more Detroit's thats for sure
    22 Jul 2013, 05:06 AM Reply Like
  • User 353732
    , contributor
    Comments (5161) | Send Message
     
    Nothing human is or ever has been too big to fail.
    The Roman Empire fell; as did the Persian, British and Soviet empires; The run is setting on Japan and the US empire is manifestly failing.
    What then are mere shabby, derelict municipalities or States?
    22 Jul 2013, 05:21 AM Reply Like
  • whidbey
    , contributor
    Comments (3547) | Send Message
     
    More to the point, how does a nation state fail? One answer is to allow its local governments lose stability, followed by state or regional governments. The US has the potential to simply come apart at the local and state level. It is interesting (frightening?), voters in state elections average less than 1/3 of those eligible to vote. Most don't have any idea of what is happening, and may not care - yet. In the meanwhile Congress has not heard about the problems and when they do hear, they will not be able to take any action to affect the situation. Physical gold may become more necessary.
    22 Jul 2013, 08:32 AM Reply Like
  • jmodrkrk
    , contributor
    Comments (94) | Send Message
     
    In the event of a failing nation state I'd be more interested in firearms, canned meat, blankets and gasoline.

     

    Gold has it's place as a vehicle for investors (yes, the physical variety too) but to think that physical gold would do anyone any good in a time of political destability is asinine. It would probably get you killed, probably by that guy who's got all the blankets and guns.
    22 Jul 2013, 01:27 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    Meredith Whitney Wuz Right!
    22 Jul 2013, 02:15 PM Reply Like
  • marketmaster
    , contributor
    Comments (38) | Send Message
     
    Scams, Scams ,Scams all over the States. Ever heard the one about the Fire Officer who was promoted just 6 months before he was due to retire resulting in a huge Pension increase? You have all heard these stories. America will go the way of the Romans.Only question is when, not if.
    22 Jul 2013, 04:51 PM Reply Like
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