Recipe for municipal default:
Unrealistic benefits for public workers + housing crisis (lower property taxes) + economic crisis (lower income taxes) + years of wasteful spending + fraudulent accounting = Best of luck (especially you, Californians).
Cities on the brink:
Stockton, CA
Detroit, MI
Mammoth Lakes, CA
San Bernadino, CA
Compton, CA
Get ready for less police/fire, higher crime (unless you believe crime goes down in economic downturns with less police on patrol), more traffic tickets, less public services ...
Source: http://www.zerohedge.com/news/gathering-pace-muni-fails
Source: http://www.latimes.com/news/local/la-me-0719-compton-bankruptcy-20120719,0,7289469.story
Source: http://www.sfexaminer.com/opinion/editorials/2012/07/stockton-cautionary-tale-california
Source: http://latimesblogs.latimes.com/lanow/2012/07/mammoth-lakes-bankruptcy.html
Source: http://www.reuters.com/article/2012/07/03/us-stockton-bankruptcy-cause-idUSBRE8621DL20120703
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