Stockton - Domino #1

When I posted the blog yesterday about California being technically bankrupt, little did I know that Stockton, California actually went bankrupt yesterday when a Federal bankruptcy judge accepted the city's bankruptcy petition. Stockton became the largest city (pop. 300,000) in the country to seek bankruptcy protection. www.cnbc.com/id/100578156

Some of the myriad reasons that led to the filing are set out in a column by Ann-Marie Murrell. They are based on the testimony of a city council member at the bankruptcy court hearing and include such sound fiscal policies as unlimited sick and vacation time with the ability to cash it out at retirement, $900 million owing to California PERS and a "Lamborghini" health care plan. You should take the time to read the full list because many other California (and probably Oregon) cities have undoubtedly been doing the same thing. And domino #2 will be?

finance.townhall.com/columnists/ann-mariemurrell/2013/04/02/way-to-go-unions--stockton-ca-filing-bankruptcy-n1555096