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Old 05-31-2010, 03:45 PM   #21
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Originally Posted by clifp View Post
As a taxpayer (well most years) I am less upset about loaning money when I think I may get it back (like banks) than to truly insolvent organizations like GM.
At least California has taxing authority...
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Old 06-03-2010, 10:22 AM   #22
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I think the tone of the posts reflects my whole point

"Yawn, yeah whatever, the Gov will bail them out.
No biggie. The states have taxing authority.
Anyhow, the states are not really bankrupt"

WHAT? omg. The complacency is astounding.
Where is the outrage? Ha! This is America, if one is outraged, one is viewed as a wacko, pinko, traitor. I mean, Europeans riot & storm gov buildings. Americans sit on the couch & watch them on tv.
It looks like people end up with the government they deserve...............
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Old 06-03-2010, 10:50 AM   #23
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if one is outraged, one is viewed as a wacko, pinko, traitor.
Not necessarily. But IMO, if you want someone to take you seriously, then use seriously correct language. Don't call States 'bankrupt' because they are running a deficit.

Ford is not bankrupt, are they? But they hold a lot of debt.

F: Key Statistics for Ford Motor Company Common Stock - Yahoo! Finance
Quote:
Income Statement
Revenue (ttm): 125.48B
Gross Profit (ttm): 18.29B
EBITDA (ttm): 10.35B

Balance Sheet
Total Cash (mrq): 34.68B
Total Cash Per Share (mrq): 10.18
Total Debt (mrq): 130.10B

BTW, I agree that many states are in trouble. But be accurate in your assessments if you want people to listen.

-ERD50
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Old 06-03-2010, 11:11 AM   #24
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Getting back on topic,

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Originally Posted by RonBoyd View Post
The Senior Citizens League
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"This study makes clear what millions of seniors already know too well: for every $100 worth of expenses they could afford in 2000, they can afford just $76 today,” said Daniel O’Connell, chairman of The Senior Citizens League. “What has long been a difficult situation for seniors is quickly becoming a dire one.”
The problem may be exacerbated for early retirees. If the buying power decreases this much during each decade of retirement, an early retiree may be able to afford only $25-$33 for each $100 of present day expenses after 40-50 years of retirement.

It seems to me that most people have enough sense to include a "cushion" in their retirement income, so that if expenses are greater than anticipated it is not the end of the world. Did you? I know that back when I was anticipating a bare bones retirement, I did. But it this trend continues, it wasn't enough.
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Old 06-03-2010, 11:59 AM   #25
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No real surprises there.

Medical, taxes, and housing (including housing insurance) all saw the big jumps. We've all seen these increases. yet the CPI suggests that inflation is tame.

I don't see those changing anytime soon.
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Old 06-03-2010, 04:42 PM   #26
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Originally Posted by ERD50 View Post
Not necessarily. But IMO, if you want someone to take you seriously, then use seriously correct language. Don't call States 'bankrupt' because they are running a deficit.
-ERD50
Also, a state cannot legally file for bankruptcy only municipalities can do so. But there is a bill before the California Gov. that would prevent municipalities from declaring bankruptcy, except with the approval of the state Debt Commission.
"If the governor signs Assembly Bill 155, it would place a hurdle in the path of filing for Chapter 9 municipal bankruptcy. The bill stipulates that a city may only file for bankruptcy with the approval of the California Debt Investment Advisory Commission, which provides information on debt to public agencies."
Los Angeles may not be able to file for bankruptcy - Jun. 2, 2010

I'm not sure what a state could do if they can't pay all their bills and obligations. They can't hand out IOUs forever. Would they have to restructure themselves? The prospect of the California legislature accomplishing that is very dim. Who else could legally take control of the state's finances?
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Old 06-04-2010, 01:16 PM   #27
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"If the governor signs Assembly Bill 155, it would place a hurdle in the path of filing for Chapter 9 municipal bankruptcy. The bill stipulates that a city may only file for bankruptcy with the approval of the California Debt Investment Advisory Commission, which provides information on debt to public agencies."
Los Angeles may not be able to file for bankruptcy - Jun. 2, 2010
This bill was amended in committee to make the California Debt and Investment Advisory Commission findings advisory, rather than binding. A municipality may re-apply, or hold a public hearing to override the commission.

Without that change, we would have municipalities defaulting and dropping into creditor collections without protection of bankruptcy, a fairly foolish state. Blocking bankruptcy proceedings doesn't magically create funds to pay debt or other obligations. It simply means that where bankruptcy could have been used to do an orderly adjustment and renegotiations, we now will have a creditor free-for-all. "Vallejo Sanitation & Flood Control District, a division of PIMCO," anyone? That doesn't do PIMCO or Vallejo any good.



http://www.leginfo.ca.gov/pub/09-10/...d_sen_v94.html
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