Bankruptcy To Hit More American Cities

Three California cities filed for bankruptcy – San Bernardino, Stockton and Mammoth Lake and the trend is spreading nationwide.

In the last few weeks, three cities in California filed for bankruptcy – San Bernardino, Stockton and Mammoth Lake.

Oakland, CA is now on the verge of following suit, but they are holding off and trying to fight to stay afloat.

The disturbing trend is spreading throughout the United States with cities and even entire counties declaring bankruptcy.

In the run up to the bankruptcy public workers are often required to forfeit a massive percentage of their pay along with retirement benefits due to threats of bankruptcy being declared in which they will lose everything.

Last year a Rhode Island city told their firefighter’s and police officers to give up 50% of their pensions or risk losing it all.

Michaela Krauser of the Next American City tells RT’s Liz Wahl what happens when cities go bankrupt.

Categories: ECONOMY

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