In a solemn display, laid-off firefighters and police officers lined up Tuesday to turn in their helmets and badges ”” symbols of deep budget cuts that were destined to further erode the quality of life in one of the nation’s most impoverished and crime-ridden cities.
Nearly half the Camden police force, including civilians, and about one-third of its firefighters lost their jobs as city leaders sought to balance the budget amid falling tax revenue and diminishing aid from the state.
In all, the city laid off 335 workers ”” about one-sixth of its employees.
Camden is just the tip of the iceberg. States and municipalities have been cooking their books for decades. A recent study suggested that the states collectively owe $2.5 Trillion to pension funds that they have been ignoring and keeping off their books. My guess is that 40 of the 50 states are effectively bankrupt.
If AO is correct, better hold on to your wallets. Cash burried in the back yard is looking good now.
Here is the link to the news story I mentioned in my #1.
http://www.cnbc.com/id/41129099
I doubt that the Feds will let any of the states actually go broke (although they should). My bet is that we will see a multi-trillion dollar bailout for the states within 2-3 years. The only question is where are we going to get that money since we all know that Washington is even more broke than the states.
I don’t see China throwing good money after bad. They have woken up and realized that for the last ten years Bernie Madoff has been the Secretary of the Treasury here. My gut says Helicopter Ben will come to the rescue. QE3 anyone? Or will it be QE4 by then?
In any event burying cash is the wrong plan. You want be burying gold and or silver. Because cash will be trash.
The backstory is that the mayor didn’t want to do the layoffs, but the union refused to give any contract concessions.
The real question is whether the Republicans will hold firm and refuse to raise the dept ceiling. Now is the time and now is the hour. If they can’t or won’t do it then it is proof to the tea party and everyone else that the federal government as an institution is incapable of fiscal responsibility and that economic collapse cannot be prevented.
Let government live within the current debt ceiling to start and then we can work to bring the debt.
TEC churches in Camden in 2009 seem to reflect these bad fiscal times. St. Andrew with ASA of 140 (seats 205) but Plate & Pledge of only $35K, St. Augustine with ASA of 62 (seats 350) and Plate & Pledge of $104K, St. Paul with ASA of 110 (seats 600) and Plate & Pledge of only $32K, and St. Wilfred with ASA of 13 (seats ??) and Plate & Pledge of merely $5K. All 4 together should create one viable parissh. St. Paul has plenty of seats. Statmann
Bad fiscal times are the result of bad fiscal policy. Govt worker unions, defined benefit plans all are sending the economy auguring into the ground.
AO says “doubt Feds will let these under-water states go bancrupt,” but the Feds are bancrupt – $14,000,000,000,000 in debt. Talk of robbing Peter to pay Paul. It is all a house of cards.
I just laugh when states like Mass, Ill, NJ, Calif talk of bailouts from the Fed govt, WE ARE THE FEDERAL GOVT. There is no one left to provide the bail out.
Learn mandarin – your new Chinese boss will give you your job directives in mandarin. Good luck. Keep voting in those Dems. We did here in Mass – Barney Frank, Jim McGovern, et. al. What a bunch of losers.