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Houston is Bankrupt
Happy news from
Mish:
City of Houston
Disturbing Financial Facts---October 2009
By: Bob Lemer, Aubrey M. Farb and Tom Roberts
The City of Houston is financially broke and it appears that the mayor who takes office in January 2010 may have to captain the City through bankruptcy procedures.
The City’s unrestricted assets were $1.2 billion short of the already recorded corresponding liabilities these assets were needed to pay as of fiscal year end June 30, 2008,according to the City’s latest publicly available audited Comprehensive Annual Financial Report (CAFR). The $1.2 billion shortfall was a result of operating losses totaling $1.5 billion for fiscal years 2004-2008, applying the full accrual basis of accounting used in the private sector.
Happy news from Mish:
10 comments:
Not a problem so long as they can tax/fee/defer/deny/borow...nope no problem, in fact to prove the point they may increase pay and benefits. GO default is remote...now revenue bonds such as the "sports" monuments to the wealthy might have problems.
At least you have Cornbreadd.
HPD should issue more tickets!
HPD and more tickets. That's why they're installing red-light cameras as fast as possible. Low cost method of generating huge new revenues.
To be fair, the timing of this is very suspicious considering we have an important election in a few days.
This is unfortunate, but I think we are going to see a tidal wave of bankruptcies in the coming years. I was surprised to learn how much debt my city was carrying on the balance sheet. It seems like the story from the past ten years has been if we want to do something, and can get credit, lets do it. To hell with considering the consequences.
If its true, Out-Of-Town Brown's pension snafu is one of the likely reasons.
I'd also expect that this would have to put a crimp in Mayor White's senatorial or gubanatorial aspirations.
Reilly
This notice really makes me thing about leave my house at Houston and search another job somewhere near miami.
Why the hell is the back of my head in your blog..take it off! Lame ass story...Shaggy..
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