Bankrupt cities and towns send warning message - is anyone listening?
You will start hearing about this more and more in the coming months and years and how these situations are handled could indicate the speed of our potential recovery. As of this writing multiple cities large and small have filed for bankruptcy under crushing debt. Vallejo in California is a perfect example of a high profile city followed by Prichard, Alabama and even Houston,Texas . Baltimore,Detroit,Philadelphia and Chicago are looking at crippling financial woes threatening to push these major cities into bankruptcy. There are many more cities and towns of various sizes including states like Oregon and California, whose only remaining option will be bankruptcy and yet there is one common theme running through all of these stories. Unsustainable pensions and unions unwilling to negotiate! Bankruptcy allows the cities to modify their union contracts or simply default on the pensions all together. I have looked at every opportuni...