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CALIFORNIA WILL LEAD THE WAY FOR BANKRUPT CITIES

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

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...

HIGH UNEMPLOYMENT

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

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

As  you know I am sure, you cann't borrow from the future forever, it eventually catches up with you.

Jul 12, 2012 12:13 AM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

If it was Unions (many who have renegotiated down their benefits) who outwitted the government entities best and brightest, why don't we hire them to run our municipalities.  They seem to be (in retrospect) the smartest guys in the room.  My hunch is that a lot of it was caused by lost revenue, as nobody was paying the property taxes, and county and cities lost a lot on decreasing sales tax revenues.

Jul 12, 2012 12:14 AM
James A. Browning
Browning Real Estate School/REO Institute - International, IT
MRE REOCertified(R) SSCertified

Thanks for sharing! Please join our group on LinkedIn, ‘REO Institute’. We share information on market conditions, posts, ideas, and comments. Please share your opinions and comments on the Real Estate industry. Thanks, James A. Browning MRE

Jul 12, 2012 01:22 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

This is bad news for our economy . . and California always leads the pack. ..I'm not a guru but I can see our future

Jul 12, 2012 01:57 AM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

Unfortunately I agree with you...  In fact I agree with everyone that made a comment about your post... How sad this all is for our Nation...  Yikes...

Jul 12, 2012 03:07 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Edward & Celia...plain and simple...math a child can understand. What is it about adults that don't?

Gary...your comment is loaded for bear. YES... to hiring the ones who are more successful than our own governments. As to your other points, The Japanese bank 2/3 of their salary and as a result, they just don't deal with rainy days like those that spend all their money do...In other words, fail to plan or you will plan to fail is upon you. A city close by to me knew it was heading south 3 years ago. What did they do with this foreknowledge? They bickered between then and now.....thank you Gary...

 

James...thank you for spending valuable time here on my post and for your most gracious invitation too

 

Jul 12, 2012 04:45 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Fernando......What is happening is not good and you can bet that Cities all over America are calling the cities in California for direction, feedback and PROCEDURE on this move. Tip of the iceberg here and add election year to all this? There is a mighty hiccup coming and it is not bueno. Real Estate will stay smart...but jobs?

BETH...The ant and the grasshopper comes to mind. One works and one plays and then the winter comes. the one who worked now plays and the one who played now suffers...This is childhood 101..Just who is running the places anyway?

 

 

Jul 12, 2012 04:52 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Richie - The U.S. is reaping the results of its growing division, both political and social; and neither side is willing to compromise for they think it will appear as a win for their opponents. Unless we can come together and deal with our problems rationally, we're not just headed for a fiscal cliff. we're committing national suicide.

Jul 12, 2012 05:00 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello John...Its everything our enemies hoped for and Russia has been preaching for years...that we will collapse from the inside... implode if you will. This recent (and ongoing) Real Estate fiasco as seen by people outside of the United States says that it takes very little to topple us in this way. The banks proved it beyond a doubt. It is tantamount to a nuclear strike. We allowed the banking industry to shoot itself in the foot and the whole United States is limping along

John..please consider doing a post sharing your observations...

Jul 12, 2012 06:31 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Richie, It is so sad that cities are in such bad financial shapes. But when you look at their big brothers, the states and their uncle then it is not as surprising. Someone didn't teach financial responsibility to the younger children.

Jul 12, 2012 07:09 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Debbie...what an astute observation to make...You know Debbie...there be a post for the posting...go at it D

Jul 12, 2012 07:37 AM