Behind the scenes, negotiations to remedy have failed and all we know it as the word bankruptcy after that. Prior to however, lots went on and years back, the events of today were set up at that time. Being responsible is a non-negotiable item 24/7 commitment. Some people handle it better than others. Now, we get to see how politics... not fair play have had their way. The chickens have come home..in droves
LITTLE BY LITTLE AND THEN...COLLAPSE
Running a city is a business. Getting reelected is politics. When someone tries to do the right thing, it usually costs them votes. Their thinking is how can I serve the city if I am not re-elected. Thus they give in, go for votes and a chink in the armor of the city is logged...Sadly, one of many. At some point, the whole thing fails...
UNIONS JUST DON'T GIVE IN
Unions are largely responsible for the mishap. They wont budge, give in or re-negotiate forcing their ways upon everyone. This tactic is what got us into this mess to begin with. Bankruptcy court says...NO MORE. It ends now and we all lose
MORE BANKRUPTCY COMING TO CALIFORNIA
Three cities have pulled the BK trigger and it is just the tip of the iceberg. And it is not just the Unions that contribute chaos either. The banks who hold toxic mortgages have not addressed their flawed business models for years expecting the government to bail them out. Meanwhile, people are unemployed and in foreclosure
BANKS ARE THE 800 LB GORILLA
Now, after several years of BANKS doing nothing incorrectly, laws will be put in effect that influenced and determine a better outcome for foreclosure defaults. These laws go into effect January 2013. That should tell you that our Shadow inventory is not going away anytime soon especially if you calculate in the high local unemployment dilemma...
Don't confuse the Federal projections and numbers with the local stats. In my neck of the woods, we are talking numbers that will remain high for years. All that says is that a new wave of foreclosures and bankruptcies are just getting started. Buckle-up