THE PEOPLE'S REPUBLIC OF CALIFORNIA - This site is dedicated to exposing the continuing Marxist Revolution in California and the all around massive stupidity of Socialists, Luddites, Communists, Fellow Travelers and of Liberalism in all of its ugly forms.

"It was a splendid population - for all the slow, sleepy, sluggish-brained sloths stayed at home - you never find that sort of people among pioneers - you cannot build pioneers out of that sort of material. It was that population that gave to California a name for getting up astounding enterprises and rushing them through with a magnificent dash and daring and a recklessness of cost or consequences, which she bears unto this day - and when she projects a new surprise the grave world smiles as usual and says, "Well, that is California all over."

- - - - Mark Twain (Roughing It)

Monday, October 15, 2012

30 California cities are sinking in debt

Cities are over the People's Republic are under review for a downgrade in their credit rating

The debt of 30 California cities, including Oakland, Fresno and Sacramento, has been placed under review for downgrades because of economic pressures in the state, Moody’s Investors Service said.

The examinations may affect $14.3 billion in lease-backed and general-obligation debt issued by the municipalities, the New York-based company said in Bloomberg News.

“California cities operate under more rigid revenue-raising constraints than cities in many other parts of the country,” Eric Hoffmann, who heads Moody’s California local government ratings team, said in a statement.

“Combined with steeply rising costs, these constraints mean that these cities will likely recover more slowly than their peers nationally, even if the state’s economic recovery tracks the nation’s.”

Moody’s said it identified the credits as part of a broader review started in August of 95 rated cities in California.

The general-obligation bond ratings of Los Angeles, now Aa3, fourth-highest, and San Francisco, Aa2, third-highest, are on review for upgrades, Moody’s said.

Cities with debt under review for credit downgrades include:
  • Azusa
  • Berkeley
  • Colma
  • Danville
  • Downey
  • Fresno
  • Glendale
  • Huntington Beach
  • Inglewood
  • Long Beach
  • Los Gatos
  • Martinez
  • Monterey
  • Oakland
  • Oceanside
  • Palmdale
  • Petaluma
  • Rancho Mirage
  • Redondo Beach
  • Sacramento
  • San Leandro
  • Santa Ana
  • Santa Barbara
  • Santa Clara
  • Santa Maria
  • Santa Monica
  • Santa Rosa
  • Sunnyvale
  • Torrance
  • Woodland

In addition, the pension-obligation bonds of several issuers were downgraded, Moody’s said, including Downey, Fresno, Oakland, Oceanside, San Leandro and Santa Rosa.
(Bloomberg News)

California city files for bankruptcy


Anonymous said...

Many of my relatives live in the Chico area2, and are fairly savvy politically. Yet when I tell them about things I read at your blog, Joel Kotkin's blog, and Victor Davis Hanson's site, they look at me with deer in the headlights look. They assure me that California is not a third world country, but maybe Chico is doing better than most.

Gary said...

90% of people pay no attention to politics. They have no idea about businesses leaving the state etc.

California will not fall overnight. But socialist politices will slowly pull down the state.

Anonymous said...

This site is funny.