Vallejo Is Largest California City to File Bankruptcy

[moh malekpour]

I have not been in Vallejo but the article says it is largest CA city to file bankruptcy. The city is located in Northen CA and has a population of 117000. I am in Southern California. We had Desert Palm Spring and Orange County bankruptcies in the past. The OC bankruptcy was very large and had national effect.
http://www.bloomberg.com/apps/news?pid=20601087&sid=arJRg6BLyYl8&refer=home

 

[Terrel L. Shields]

Why so? Orange county, if I recall correctly has a treasurer who was make large derivitive bets (i.e.- risky gambling) and lost a mint.

Today way too many governments have too much money (pension money that is) to manage. Those have become something more than investors. They are sticking their nose into the management. In the news today was a report that a Teachers pension fund in Canada was trying to take over a company but the deal was rejected by court.

Pensions have no business making derivitive trades or imposing their management upon companies. If you don't like the way they do business, go somewhere else.

 

[Cigar]

I live across the Bay from Vallejo, the municipal salaries they pay are enormous, when you look at the salaries those numbers don't include pension and health care benefits, so a police gal like Joann West might be only making $436,000 a year now, but if she gets in 33 years she can retire at full salary with cost of living increases which could total a million dollar a year pension, if she lives long enough. When you click on this link to Vallejo salaries look at some of the other departments, start at over $400,000 a year and go down from there with the different departments. Chapter 9 is the best out for all of our California cities, the municipal unions have struck deals which they could never pay for. These people won't starve in their old age, the FPBC will take over when their plan is insolvent, of course they only pay about 33% on the dollar, so Joann may have to live on $300,000 a year when she's old and gray, in the meantime she can keep writing parking tickets.