Post by jeffolie on Jul 29, 2012 16:43:10 GMT -6
retirees lose healthcare in Stockton
1000's of Cities will file BK, retirees lose healthcare in Stockton
This will be appealled as contrary to existing case law. How high up the judicial food chain will it go? This is controversial and the existing US Sup Ct could go either way.
I have predicted a flood of City, Counties, Local Agencies ... thousands will go bankrupt before the ultimate bottom happens after the Dollar crisis starting in 2014 and/or beyond with time to exhaust itself a year or more later 2015 and/or beyond.
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Federal Bankruptcy Court Lets Stockton, California Cut Retiree Health Care Benefits; Flood of City Bankruptcies Coming
In a welcome, common sense ruling, Court lets Stockton, Calif. cut retiree health care
A federal bankruptcy judge on Friday cleared the way for Stockton, California to cut health care benefits for retirees while it is in bankruptcy proceedings.
Stockton is seeking Chapter 9 protection from its creditors and said that it would cut retiree health benefits while it reorganizes. Retired employees sued to stop those cuts.
Judge Christopher Klein on Friday issued a temporary order denying the bid to stop the benefit cuts, and he said a formal decision was on its way.
Stockton's attorneys had argued that bankruptcy law gave the city wide latitude on how to spend its revenue while it prepares a plan to restructure its finances.
"For the reasons explained in the forthcoming decision of this court, the Application for Temporary Restraining Order and Preliminary Injunction or in the Alternative for Relief from Stay is DENIED," Klein wrote.
Flood of City Bankruptcies Coming
This is a good start for what needs to happen. The next step needs to be huge clawbacks on promised benefits, preferably top down, so that those with the highest pension benefits bear the brunt of the hit.
As soon as cities realize this is the way out, a flood of bankruptcies will be on the way.
Mike "Mish" Shedlock
globaleconomicanalysis.blogspot.com/2012/07/federal-bankruptcy-court-lets-stockton.html
1000's of Cities will file BK, retirees lose healthcare in Stockton
This will be appealled as contrary to existing case law. How high up the judicial food chain will it go? This is controversial and the existing US Sup Ct could go either way.
I have predicted a flood of City, Counties, Local Agencies ... thousands will go bankrupt before the ultimate bottom happens after the Dollar crisis starting in 2014 and/or beyond with time to exhaust itself a year or more later 2015 and/or beyond.
===================================
Federal Bankruptcy Court Lets Stockton, California Cut Retiree Health Care Benefits; Flood of City Bankruptcies Coming
In a welcome, common sense ruling, Court lets Stockton, Calif. cut retiree health care
A federal bankruptcy judge on Friday cleared the way for Stockton, California to cut health care benefits for retirees while it is in bankruptcy proceedings.
Stockton is seeking Chapter 9 protection from its creditors and said that it would cut retiree health benefits while it reorganizes. Retired employees sued to stop those cuts.
Judge Christopher Klein on Friday issued a temporary order denying the bid to stop the benefit cuts, and he said a formal decision was on its way.
Stockton's attorneys had argued that bankruptcy law gave the city wide latitude on how to spend its revenue while it prepares a plan to restructure its finances.
"For the reasons explained in the forthcoming decision of this court, the Application for Temporary Restraining Order and Preliminary Injunction or in the Alternative for Relief from Stay is DENIED," Klein wrote.
Flood of City Bankruptcies Coming
This is a good start for what needs to happen. The next step needs to be huge clawbacks on promised benefits, preferably top down, so that those with the highest pension benefits bear the brunt of the hit.
As soon as cities realize this is the way out, a flood of bankruptcies will be on the way.
Mike "Mish" Shedlock
globaleconomicanalysis.blogspot.com/2012/07/federal-bankruptcy-court-lets-stockton.html