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Central Falls, Rhode Island Files For Bankruptcy

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http://www.zerohedge.com/news/central-falls-rhode-island-files-bankruptcy

It's not Jefferson County, yet, but it could certainly be seen as the precursor to the first domino. "The state-appointed receiver overseeing the cash-strapped Rhode Island town of Central Falls has filed for bankruptcy on the city's behalf in an effort to help it get back on its feet. Receiver Robert G. Flanders and Rhode Island Gov. Lincoln Chafee announced the step - which Flanders has described as a last resort - at a news conference at City Hall. Flanders filed the legal paperwork seeking bankruptcy protection Monday. "From the ashes of bankruptcy Central Falls will rise again," Flanders said." The biggest losers: unions. "With the city now seeking bankruptcy protection, Flanders said he plans to reduce pension benefits beginning in late August. He has asked the federal court to immediately reject collective bargaining agreements. He said the next set of pension payments will reflect at least the cuts he outlined to city retirees. In addition, he said city workers will face layoffs. Flanders called the step unavoidable, as taxes have already been raised and city services have been cut "to the bone."

For the US to recovery more have to follow the this including the govt.

Still there's no need with the recovery in full swing....

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http://www.zerohedge.com/news/central-falls-rhode-island-files-bankruptcy

For the US to recovery more have to follow the this including the govt.

Still there's no need with the recovery in full swing....

In fact this is the route to recovery. Default followed by misery followed by a ...real recovery sometime away, not involving over borrowing. The false recovery is about to implode and be replaced by the one we could have had much more cheaply 3 years ago by simply recognising the reality then and getting on with the pain at that time. Now it will be worse.

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Seems like the bankruptcies are gathering momentum amongst cities in the US. I can only imagine when the boomers retire en masse, how most will go down.

I agree with your point and plummet expert.. this is part of the healing process. Liabilities have been taken out that cannot be repaid. So for a time they struggle and sacrifice to pay those debts, ultimately failing. Then comes the cleansing and these institutions can begin anew.

We don't even need new laws or ideas to come to power to make this happen. The process already exists in the law, going back centuries. The law provides an equitable solution. I remember the case of the bankruptcy of that city in California, and the judge presiding over the case had to look back on case law going back several centuries and to another country, English judges setting the precedence.

He determined based on ancient rulings the order of precedence for the claimants. For example he decided that essential services to the community must be paid before monies are given to pensions or other creditors. He determined where pensioners sat on the order of the creditors.

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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