Wednesday, July 18, 2012

#4: Compton, California, May File For Bankruptcy

Following Stockton, Mammoth Lakes, San Bernardino ...
The City of Compton, a city of 93,000 people located on the outskirts of Los Angeles, must decide by September 1 whether to seek bankruptcy, according to its two most senior financial officials. Such a move would see it join a growing number of deficit-hobbled California cities that have used the filing to restructure onerous debt loads.
Compton, which has anaccumulated $43 million deficit and has depleted what had been a $22 million reserve, will run out of cash to make its payroll on September 1 at its current cash consumption rate, city comptroller Steven Ajobiewe told the city council during a July 17 meeting.
I think we are seeing the trailer for the California movie to be released in early 2013, tentatively titled: "Too Big To Fail."

But at least we are starting to see how this will all end. 


  1. the filing of Bankruptcies of cities maybe the NEW Housing Crash ripple to effect the whole USA.
    The over promising of benefits to the City Employees, and the citizens of the community has come to a abrupt end..When will the sacred Muni Bond collaspe in price..Will the lending costs go sky High for all municipalities..
    we are living in interesting times..

    1. I don't know how the movie ends, but if filmed with a hand-held iPhone, it's going to be a very turbulent film, and plenty of sequels.

  2. An interesting City Journal article on San Bernadino.

    1. Wow, that's an incredible story.

      For those who want to get to it: