Stockton, California is Bankrupt. Denial strikes again.
Stockton, California is a medium sized city about 300,000 residents located south of Sacramento and West of Oakland and San Francisco. This would seem to be a great location for business as it is not a far drive from these two very large and popular metro areas. However, the city has been burdened with debt for years and has now finally formally confirmed that it cannot pay it back.
Admitting there is a problem is the first step. Denial is the best way to maximize the damage a problem will inflict. Its like having a lump and not getting it checked out or smelling something burning in the kitchen and not going to see about it. This is what happened to Stockton and this is what is happening in the United States and Europe.
I wonder what recourse will the lenders in bankruptcy court have when the entity filing is a city? I guess the city will have to auction off some of that land and heavy equipment that its been holding in order to satisfy its debts. This will then increase the costs of municipal projects in the future as the city will not OWN the equipment needed maintain the city. Example street sweeper trucks, sewer drain pumps, etc.
Maybe the judge will order a percentage of the revenue the city is generating to be redirected to the lenders? This will undoubtedly increase taxes and guarantee less services delivered to the people by definition.
People living in this area should seriously consider relocating immediately as Stockton residents will be targeted to help pay “their share” of the city’s debt. Since the city is being forced to pay they will force you to pay.
How is your city doing? Is it running a deficit too? Have your elected geniuses managed to spend way more money than they have been collecting in taxes for multiple years? What do you think is coming next?
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