Vallejo Progresses
September 6th, 2008 by 
reality
From the Chron, the Vallejo bankruptcy moves forward. This is important, because breaking the grip of the ludicrously over-compensated city (and state) employees is going to be important to preserve any semblance of public services:
A federal judge granted the city of Vallejo bankruptcy protection on Friday, ruling against the city’s employee unions.
Judge Michael McManus, chief judge with the U.S. Bankruptcy Court in Sacramento, said in a 52-page ruling that the city met all the requirements for Chapter 9 bankruptcy.
The city faces a $16 million deficit with no money in reserve. The City Council voted unanimously in May to file for bankruptcy, becoming the largest city in California to seek Chapter 9 protection.
Vallejo’s police, fire and other unions argued that the city was not insolvent and was using bankruptcy as a way to dodge its contract obligations. The judge on Monday will begin considering Vallejo’s request to nullify its labor contracts.
Union representatives said they would continue to fight.
The unions think they have the right to help themselves to whatever they want out of the taxpayer’s pocket.
Posted in Government, Rogues and Rascals, The Economy | 
September 6th, 2008 at 9:00 am
Off-topic
Reality, what do you think of the Fannie/Freddie bailout? Thanks.
September 7th, 2008 at 1:56 pm
I think we just found out where all of the bad mortgages will be buried (Fannie/Freddie) and who will pick up the tab (the taxpayers). I also expect that the Fed will refresh their balance sheet by dumping their crud there as well.
One would think that financials and the dollar will take a nosedive this week but since up is down and black is white I expect that BKX and USDX will soar.
And I thought renting was smart. It turns out I will be paying for my neighbor’s liar loan anyway.