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Judge: Stockton, Calif., Can File for Bankruptcy

radcen said:
Don't disagree with anything you say.

Regarding the part in red, do you think it's possible that the lender knew the risks, but secretly/internally chose to ignore it because they thought that in a worst case scenario they could get some sort of "bail out"?
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It's plausible, and some combination of bad understanding and assumption that others would cover the costs of their risks were probably involved. The latter assumption might have created a disincentive for due diligence/nurtured complacency. Hopefully, we'll learn more as the case is heard, as it could shed insight into risk management and also moral hazard (assumption of bailouts) issues.
 
So, when does California follow suit?
 
Fenton said:
That 127 billion isn't counting unfunded state pension liabillities.

Its closer to 200 billion.
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Millions, I think - only the federal government wastes hundreds of "billions" on a regular basis.
 
jonny5 said:
This is why most companies moved to retirement accounts that a company contributes to. Only a few unionized industries still do pensions, and theyre going bankrupt too, like GM, airlines, etc. I dont know why anyone who starts a career today would rather have a pension that the compnay owns, than a investment acct that the employee owns.
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From back in 2005...

Who knew? Speculation about which welfare state will be the first to buckle under the strain of the pension and medical costs of aging populations usually focuses on European nations with declining birthrates and aging populations. Who knew the first to buckle would be General Motors, with Ford not far behind?

GM says health expenditures -- $1,525 per car produced; there is more health care than steel in a GM vehicle's price tag...

Health care for retirees and their families -- there are 2.6 of them for every active worker -- is 69 percent of GM's health costs...

George F. Will - What Ails GM
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Deuce said:
One city goes bankrupt, therefore liberalism bad.
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I don't think he said that. I think he said that government spending more than it has to spend is bad. And it is.
 
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