California Declares Fiscal Emergency
cnbc.com
excerpt:
Jerry Brown, California’s governor, declared a state of fiscal emergency on Thursday for the government of the most populous US state to press lawmakers to tackle its $25.4 billion budget gap.
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Meanwhile, Vallejo, CA bond buyers prepare for defaults!
bondbuyer.com
excerpt:
Unsecured creditors will receive 5 cents to 20 cents on the dollar for their claims under a reorganization plan Vallejo, Calif., filed Tuesday in federal court.
“The city regrets that it cannot pay a higher percentage,” Vallejo officials said in the court filings. “The city lacks the revenues to do so while maintaining an adequate level of municipal services, such as the provision of fire and police protection and the repairing of the city’s streets.”
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There it is, in black-and-white!
"...city lacks the revenues to [repay bond holders] while maintaining an adequate level of municipal services..."
Translation (on behalf of the elected thieves): "We choose to keep ourselves empowered and enriched at the expense of the people we promised to repay!"
All of the affected bond holders should remember that when they see city officials driving around town in their new Lincoln Town Cars and Cadillacs, dining at the best restaurants, slipping into expensive hotels and jacuzzis with their mistresses and call girls, and sipping the best wines, they are doing so with the bond money they stole from investors!
In response to the bleak news from CA, U.S. equity market futures are soaring this morning! -ng-
Hopefully, no one here bought any state or municipal bonds from the Central-American-annexed-state of Mexifornia.
This will end very, very badly. |
