You know things are bad when a city stops buying toilet paper for its employees. Is Newark the among the first of many municipal dominoes to fall into bankruptcy?
Mish's Global Economic Trend Analysis:
Emergency Press Conference on Newark Budget Gap; Massive Service Cuts; No Toilet Paper for City Offices; Newark is Bankrupt -- Newark Mayor Cory Booker and the city council are fighting over ways to balance a $70 million budget hole. Literally everything is under discussion except the one thing that needs to be done: declare bankruptcy.
Please play this video. It is pretty enlightening....
Newark is bankrupt and public unions did it. The only sensible solution for Newark is to declare bankruptcy, dissolve the unions and their pension plans, and start all over with non-union employees for government services.
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Why send money to Haiti? Can anyone spare a roll for Newark? Or Harrisburg? Or Detroit? or ...
related:
TheNextEconomy:
Miami and 30 more American cities going bankrupt
ABC News:
American Cities Teeter on Brink of Bankruptcy
MoneyNews.com:
Buffett: Municipal Debt Meltdown Will Hit US -- Add investment legend Warren Buffett to the list of those who warn of a municipal debt meltdown.
Many municipalities have promised overly generous retirement and health benefits to public workers without any viable plans to bring in the money necessary to pay for those benefits...
