Harrisburg PA files bankruptcy.

Discussion in 'Economics' started by PocketChange, Oct 12, 2011.

  1. Well when the capital city of one of our 50 states files for bankruptcy the dominoes start to fall. This city of 50,000 is looking to have $100M of bonds forgiven. Michigan has 19 cities teetering on insolvency... ultimately the state becomes the receiver... Exactly how does this play out? Commercial entities will rape and pillage the city assets for pennies on the dollar with residual generating public services becoming privatized: Parking, Tax Collection, land, permits etc. http://money.cnn.com/2011/10/12/news/economy/harrisburg_bankruptcy/
  2. Bob111


    green shoots!

    and i'm pretty sure that city's top gvt officials will recieve their share from this "privatization". i 've seen this before.

    last sentence from same article-
  3. Capitals aren't necessarily great cities... Harrisburg has a median household income of just $30K/yr. It's a poor city, like DC.
  4. dtan1e


    but the stock market seem to be doing very well, isn't it strange?
  5. S2007S


    The stock market knows that more bailouts will come and that cities and states will all be saved, no need to panic, remember FAILURE IS REWARDED in the new world we live in.
  6. ha, good stuff
  7. I have limited understanding of the inter workings of a municipality.

    Their bond holders were moving the court to order all tax receipts to be paid to them first leaving the city with near zero operating funds.

    Chapter 9 allows them an opportunity to renegotiate or even have these bonds forgiven. $300M in debt 50,000 residents = approx $25k per family. Lawyers will make out like bandits.
  8. TGregg


    Exactly. Now if cities were doing really, really well - that would be bad news since they'd be in line to get punished for their success. Welcome to the upside down world of socialism where good is bad and right is wrong.
  9. That's an excellent plan, if the goal is to start a revolution.
    #10     Oct 12, 2011