Wednesday, January 19, 2011

Calif Town Offers Glimpse of Where Public Debt Can Lead

"California's Potholed city presents view of the Future" writes Richard Waters -
Before tonight's council meeting, please read this Financial Times article about the little town of Vallejo that buckled under the weight of its own overhead and declared bankruptcy.
    Before we sell nearly $3 million in bonds for a senior center and $250,000 for legal fees to fight the waterfront master developer in court, take a look at how we may have to pay for it. The seniors just need a safe, clean place to enjoy themselves. Most wouldn't want the city to plunge into 20 or 30 years of debt to pay for it.

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