It seems that Hartford, Connecticut is about to join Detroit on the list of
American cities who have filed for bankruptcy.
https://www.reuters.com/article/us-hartford-finances/hartford-conn-to-seek-bankruptcy-if-no-state-budget-in-60-days-idUSKCN1BI2QJ
Any of you guys in Connecticut have any insights on what is going on there?
Too many crooked politicians over the years. Too much crime. High Taxes. Etc. Etc.
When Detroit filed bankruptcy retired police officers and firefighters took it up the shorts.
They gave back 80% of their pensions in some cases.
The state isn't allowing Hartford to go Bankrupt, which costs millions of dollars that should really go somewhere else more useful. For most people who don't live in Hartford, or the few surrounding towns, Hartford is really a money sucker.
In other words, all Connecticut residents who do not live in Hartford
are now subsidizing the irresponsible spendthrifts who run that city.
Eventually this will bankrupt the entire state of Connecticut.
Apparently under the US Constitution states cannot declare bankruptcy
so that will really put us into uncharted territory.
Moody's Investors Service is warning that Hartford will be in debt for many decades
and will likely default on its bonds.
http://www.courant.com/news/connecticut/hc-news-moodys-hartford-warning-20171019-story.html
Basically 80% of the city's revenue is going to pay for pensions, employee benefits, insurance
and interest on their debt, leaving only 20% to pay for police, fire, street lights, and all other services.
If they default people who are unlucky enough to hold Harford municipal bonds will lose 20-35% of their money. But it will make it very difficult for other cities to sell these bonds in the future (which is basically how they raise money for big capital improvement projects)