Stockton Bankruptcy The Result Of 30 Year Spending Binge on Illegal Mexicans and Subprime Loans to Illegal Mexicans
* Stockton’s fortunes linked to mexican foreclosure bust caused by subprime loans to illegal mexicans and the huge costs of paying for medical and other social services to unisured mexicans and their anchor babies
SAN FRANCISCO, July 4 (Reuters) – The man in charge of the biggest U.S. city ever to file for bankruptcy is clear about the root of the crisis. since the article came from the Hufffington post which thinks the words illegal alien are racist, and so the article blames most the problem on legal Americans like police officers but at the end of the article it admits it was the housing bust , the housing bust caused by giving home loans to Mexicans with ten fake IDs who skipped out on their home loans , illegal aliens who collectively drove the US into a huge recession.
Deis, who signed Stockton’s bankruptcy filing last Thursday,Before the turn of the millennium, things looked very different in California.
The U.S. stock market was booming, bolstering Stockton’s p ension funds. Real estate values were about to soar, too, bringing a flood of new tax revenue to the once quiet farming town of about 300,000 people – abo ut 85 miles east of San Fran c isco – in California’s Central Valley.
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Other U.S. cities have also experienced boom and bust like Stockton.
But analysts and investors generally see Stockton as an extreme case of fiscal mismanagement over the past two decades.
Daniel Berger, a senior market analyst at Municipal Market Data, a unit of Thomson Reuters, said last week, before the bankruptcy filing, that the municipal bond market had viewed Stockton’s fiscal problems as “a slow-moving train wreck.” The possible bankruptcy filing, he said at the time, was seen as an “isolated occurrence.”
As the 2000s advanced, Stockton continued to spend freely with the support of voters, politicians from both parties, employees and bondholders. Rating agencies were quiet about any risks and only started to downgrade the city’s creditworthiness two years ago.snip
City officials, looking to transform their sleepy downtown, approved spending on large projects to raise Stockton’s profile and turn it into a bedroom community for San Francisco and the Bay Area.
Homebuilding went into overdrive. Home prices skyrocketed to a median of nearly $400,000 in 2006 from a median of $110,000 in 2000. ( illegal mexicans were hired to biuld the homes and they bought them along with foriegn nationals aka illegals from India and China)
The city miscalculated the rate of inflation for medical costs during the 2000s. Medical costs to illegal aliens
But Stockton’s leaders burned through their reserves and began planning new construction projects to make the city more appealing to new residents.
A $47 million bond issue in 2004 was meant to finance construction of a sports and concert arena to revitalize t he city’s do wntown. The arena was built, but it ended up losing money.
A downtown high-rise building was acquired for a new City Hall. A revamp of Stockton’s downtown riverfront was financed, along with other projects, by more than $100 million in debt between 2004 and 2006 by the city’s redevelopment agency.
Stockton ended up absorbing that debt after California’s governor eliminated local redevelopment agencies last year.
It seems unlikely that Stockton will be able to sell those real estate assets at a gain.
“Most of the assets that look nice are under water,” said Deis, the city manager.
Mexican Subprime foreclosure Housing Bust causes TRAIL OF PAIN
The worst damage was done by the housing crash. Median home prices in Stockton slumped to $110,000 in 2009, erasing nearly a decade’s gains. General fund revenues in the current fiscal year are projected at $155 million, just above their level in 2001.
The real estate bust made Stockton one of the foreclosure capitals of the United States. Property-tax revenues tumbled. The city began its new fiscal year on July 1 with its 1,420-strong workforce down by a quarter from three years earlier.
Debt service has ballooned to $17.2 million a year from $3 million just six years ago.
Stockton has already defaulted on about $2 million in bond payments since February.
Recriminations about Stockton’s budget need to be set aside to avoid the kind of lengthy bankruptcy suffered by Vallejo, an other California casualty of the boom-to-bust cycle. It emerged from bankruptcy last year after three years in Chapter 9 that cost it $10 million in legal fees.
Stockton has earmarked $3.5 million for bankruptcy court expenses b ecause it h opes for a quick e xit from Chapter 9.
Legal Americans will bear the brunt of the bankruptcy while Mexicans will get health care from Obama Care – another huge violation of Americans by Illegal aliens
Bondholders, employees and retirees will be hurt in the process. Axing retiree medical benefits is now central to efforts to restructure Stockton’s finances, Deis said.
Many retirees are in a state of shock about that.
“I believed the city would honor its commitments,” said Geri Ridge, 56.
The former clerk retired last year after 26 years with Stockton’s police following a second heart attack.
Ridge lives off a monthly pension of $1,895. She learned on Friday that she now faces a $576 monthly premium for her health co verage – or $1,277 a month if sh e keeps her daughter on her plan.
She has no idea of how to pay for the coverage, which the city will fully eliminate in a year. And she has harsh words for Deis.
“I want him gone. I’m hoping whoever gets elected into office fires him, bankruptcy or not,” Ridge said.