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As I wrote yesterday, the City of Los Angeles will run out of cash on May 10 and the reserves will be totally drained by June 30.
One of the problems is the cost of bonds. Now we know that the cost of the previously issued bonds will go up in interest rates. This adds to the cost of government and will cause a further reduction in government services--about to be cut by 40% starting next week. Or, the people of LA will get a 22%increase in the cost of energy---either way the people of LA become poorer due to government policies and the ownership of the city by special interests and unions.
Get angry or get poor...LA government could collapse by Monday. What happens to the people?
More...
One of the problems is the cost of bonds. Now we know that the cost of the previously issued bonds will go up in interest rates. This adds to the cost of government and will cause a further reduction in government services--about to be cut by 40% starting next week. Or, the people of LA will get a 22%increase in the cost of energy---either way the people of LA become poorer due to government policies and the ownership of the city by special interests and unions.
Get angry or get poor...LA government could collapse by Monday. What happens to the people?
More...