Coming California Municipal Bankruptcies

Bill Anderson reports:

Steven Greenhut has been writing for years about these public employee bonanzas in Southern California, but with the housing bust and other economic calamities on the the horizon, I suspect other cities are going to follow Vallejo. For many years, public employee unions have looted one city after another, and from what I can tell, the bills are going to come due. (The list of salaries is only the surface. The benefits and pensions are breathtaking and clearly are NOT sustainable in a rational economic world.)

Don't forget that many of these employees would be hard-pressed to find comparable work in the private sector. Moreover, they have come to see these high salaries as a right and entitlement, and would not make good employees in a situation where they really had to work.

So, I wish these people luck. Remember all of those city council meetings in which municipal employees dominated the proceedings and intimidated anyone who might speak out against this largess? These people are going to be headed for financial ruin, as they have now become accustomed to lifestyles of wealthy people. I suspect that many of them won't be wealthy for much longer.

Rent-seeking run amok.