Bankruptcy was once a last-ditch act reserved for companies and individuals. Declaring that creditors could not be paid carried a stigma that no one wanted to be associated with. And rarely would a municipality file for Chapter 9, the city version of Chapter 11. How times have changed.
Since 1981, 42 U.S. cities and towns have filed for bankruptcy. The pace has picked up with 10 in the last four years [...]
by Charles Hugh Smith from Of Two Minds
That Which Is Unsustainable Will Go Away: Pensions
Publicly funded pensions and Medicare are two examples of unsustainable systems that will go away in the decade ahead. Today we look at pensions, tomorrow we examine Medicare.
One of the few things we know with certainty is that which is unsustainable will go away and be replaced by another more sustainable arrangement. Whether we like it or not, [...]
New York City pension costs have risen more than fivefold to $8 billion since 2002 and changes to the system are needed to keep budgets in check, said a bipartisan coalition for pension reform.
The increase in pension costs has squeezed funding for other programs, New York Leaders for Pension Reform said today in an e-mailed statement. The coalition supports a plan by New York Governor Andrew Cuomo to lower pension costs in New York City [...]
Greece’s austerity measures are being met with anger and grief by the people of the debt-ridden country. Days of violent protests couldn’t stop Greece’s parliament from passing a European bailout deal — but now the country faces massive cutbacks.
Whole government departments will be shut down and as many as 15,000 public servants will be thrown out of work. The crisis is even prompting a spike in suicide attemts.
One of the [...]
Governor Andrew Cuomo is tackling New York state’s spending by limiting public employee pensions and cutting almost 10,000 jobs.
According to the New York Times, Cuomo says the state can no longer afford to provide the “generous” benefits given to public workers in the past. The governor also targets the rampant benefit padding where workers step up their overtime the final year of employment to beef up their [...]