Tag Archives: bankruptcy

Interesting article from the NY Times on Detroit

An interesting article from the New York Times regarding the failure of Detroit. The highlight of the article is where they lay the blame for the failure of the system….. where it belongs! With the leadership that took the opportunity to line their own pockets instead of actually leading. From the article….

Who was to blame for this? Not the unions. They did what they were supposed to do: ask for higher pay and more benefits. No, the fault lay with the top corporate managers: it was their job, as capitalists, to deny such increases if they were not justified by productivity trends.

via What Really Ails Detroit – NYTimes.com.

 

Thanks Kim for pointing out the original article.

Mayor: Pensions might bankrupt Titusville | FLORIDA TODAY | floridatoday.com

Another cry of Unfunded Pension Liability. This time from right up the road in Titusville. A really good read if you keep this particular point in mind:

“The city can get out of the problem by paying 100 percent of its annual required contribution for about 30 years…

via Mayor: Pensions might bankrupt Titusville | FLORIDA TODAY | floridatoday.com.

The City of Titusville, like most Cities that have Pension Plans, has not been contributing what their share into their own pension plans. They have been withholding monies from the system because the Market was doing so well they could get away with it. Which is fine, and legal too. But it has set up a situation where nothing is set aside for the ‘rainy day,’ and now it is raining.

And, being politicians, are trying to pass the blame to the workers.

Don’t let them treat us like an ATM Machine.

Dont blame union for bankrupt cities – USATODAY.com

Do you remember when the Librarians and School Teachers caused the crisis way back in the 70’s?

 

The myth of massive bankruptcies has a cousin, the big lie that public employees — and their salaries and benefits — are the culprit. That, too, is simply untrue.

via Dont blame union for bankrupt cities – USATODAY.com.

 

The ‘myth’ in the article is that currently five municipalities have declared bankruptcy. Only Five. Out of 50,000 Municipalities in the US. That is math out to four decimal places….. 0.0001%.

Some ‘Tidal Wave’ isn’t it?

Leave a comment on the USA Today article and show your support of Labor. And show your support for AFSCME.

AFSCME | Cities in Default, a Mouthpiece in Denial

From the AFSCME National Blog….

AFSCME | Cities in Default, a Mouthpiece in Denial.

While the target of the article is the Wall Street Journal and their rather obvious bias against Municipal Workers and Public Benefits in general, the article can be read with a more local tone.

Click the link above, but when you read the article replace the instances of WSJ with City Leaders…. the article still makes perfect sense.

 

 

Stockton set to become largest municipal bankruptcy in U.S.

While Stockton is far away from Hollywood, Municipal Bankruptcy is still something to pay close attention to.

This article in the San Gabriel Valley Tribune is reporting some of the problems the City of Stockton is facing in their filing of Chapter 9 Bankruptcy protections.

One of the interesting lines in the article:

Multi-year labor contracts for city workers carrying escalating costs and generous retirement plans added to the burden.

A phrase that is appearing more and more often about Municipal Workers across the country….. Generous Retirement Plans. They make it sound like we Municipal Workers don’t work for and earn those retirement benefits.  And just who, exactly, is deciding what is ‘normal’ and what is ‘generous?’

 

via Stockton: City set to become largest municipal bankruptcy in U.S. – SGVTribune.com.