Thursday, November 10, 2011

Here Come the Bankruptcies

It took some time, but mathematics is unforgiving when it comes to your checkbook -
Alabama's most populous county filed the largest municipal bankruptcy in U.S. history Wednesday, years after being plunged more than $4 billion into debt by a corruption-riddled sewer project.

Just two months after it seemed Jefferson County could stave off embarrassment by striking a deal with creditors, talks broke down over about $140 million, said Commissioner Jimmie Stephens, who made the motion to file for the protection. Since 2008, commissioners have tried to avoid the move to settle the debt, which resulted mostly from a mix of outdated sewer pipes, the lagging economy, court rulings and public corruption.

The filing does not wipe out the whole $4.1 billion, said commission president David Carrington, who wasn't certain how much the county will have to pay back. A plan would have to be worked out in bankruptcy court and approved by a judge and at least one group of creditors, Carrington said. The bankruptcy's financial burden for residents and employees likely won't be known until that plan is in place, he said.
The Real Effect
Ready for critical thinking time again?
  • Citizens elect representatives to represent them.
  • These reps might receive special training in certain areas. (Highly unlikely)
  • The reps decide that since they make the decisisions, you have to pay to play
  • Eventually, they are busted and go to jail for bribery. (Right call)
  • This in part drives up the cost of the project exponentially.
  • The bankers that did the bribing are FREE.
  • Yet we are talking about "stave(ing) off embarrassment by striking a deal with creditors"?
 I got your deal for you -
I, the undersigned, shall forfeit all rights, privileges, and licenses herein and herein contained, et cetera, et cetera... Fax mentis incendium gloria cultum, et cetera, et cetera... Memo bis punitor delicatum!

It's all there, black and white, clear as crystal! You stole fizzy lifting drinks! You bumped into the ceiling which now has to be washed and sterilized, so you get nothing! You lose! Good day, sir!
 I'll go one better, jail the crooks and take their company away.

No comments: