Real Effect: Here Come the Bankruptcies

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 Since 2008, commissioners have tried to avoid the move to settle the debt, which resulted mostly from a mix of outdated sewer pipes, the lagging economy, court rulings and public corruption.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:

Post a Comment

Real Effect Quotes

Syria - It appears that the road to Iran lies through Syria. The US will try to draw in Hezbollah through "regime change". (Q1)
- The Real Effect - January 1, 2012

Start of the Asiatic war (Late Q3 - Q4) - With the US being over committed, it can't back up its positions in other countries, the East sees this and starts moving. Fires break out faster then they can be put out.
- The Real Effect - January 1, 2012

This is not a recession, it is a depression. And a massive one at that. We are not at the bottom, we are on gaining momentum for the next plunge down. If you thought the last drop was bad, this one is going to strike fear into the hearts of men everywhere.
- The Real Effect - June 15, 2009

Look for Roberts to hold a conservative line for a while, disarming most arguments against his nomination. Then when key arguments come to SCOTUS, I believe he will suddenly become a Sandra Day and hand us over to the globalists.
- The Real Effect - August 23, 2005

Western Europe contracts massively, putting extraordinary pressure on the Euro. But the call out of Belgium isn't about revoking the Euro, rather about the preservation of the European Union and the need to 'pull together'. I would expect that we could begin to see propaganda calling for a United Europe in the face of "x" (economic crisis, terror, war). Ultimately in the endgame, foreign creditors feel the massive pinch as they try to protect their investments, but the lack of a favorable response by the people will lead to war with the far east, but not yet.
- The Real Effect - January 1, 2011