I have been telling you how this country is already broke and it is getting worse because the commie's just can't stop spending. So far I have focused mostly on the federal and state level but this problem is also getting terrible at the municipal or city level. I told you that even our cities will be destroyed by all of the commie spending. I just read an article by Dan Weil in Newsmax.com about how bad this problem is and it is getting worse by the day.
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.
They have assumed unrealistic returns in their pension fund investments and unrealistic revenue from taxes.
The Pew Center on the States recently estimated that as of the end of 2008 budget years, states had $1 trillion less than needed to pay for future pensions and medical benefits. And that number doesn't even reflect much of the losses suffered by pension fund investments in the second half of 2008.
Later, he goes on to state, "About $14.5 billion of municipal bonds defaulted in 2008 and 2009, according to Income Securities Advisor Inc., which studies distressed debt."
Los Angeles is one of the cities whose finances are in desperate straits.
"Los Angeles is facing a terminal fiscal crisis: between now and 2014 the city will likely declare bankruptcy," former mayor Richard Riordan wrote in a Wall Street Journal opinion piece.
"Yet Mayor Antonio Villaraigosa and the City Council have been either unable or unwilling to face this fact."
LA is a very big domino and, when it goes, it will take a lot of other domino's with it. But you can bet the stupid commie's will only stop spending when no one will take their debt. That is the only thing which will stop these lunatics.
It is time for revival on a global basis. Acknowledge your crimes against God's Laws, repent of those crimes, and seek the amnesty of our Lord Jesus the Christ. John 3:16 - For God so loved the world He gave His only begotten Son so that who so ever believes in Him will have everlasting life.