Bloomberg article outlining Los Angeles’ budget problems. They need to transfer $90M from the reserve account or risk having no money by May – nice!
And a great follow up piece on LA’s mayor:
Mish’s Global Economic Analyis – (this article paints him to be either quite incompetent or simply someone who pays off his friends as the city crumbles financially – judge for yourself – I don’t know much about LA’s problems but I am glad I don’t send them my tax dollars.)
One point I find more interesting though (I know cities are broke so this wasn’t news) is that the city turned down a request by the utility company to raise rates – therefore the utility will run at a deficit and they decided not to send the $73M to the city in lieu of taxes. But don’t worry, there’s no inflation (no increase in the cost of living – how long you think LA can keep those rates down and run the utility on a deficit?) – As I have warned readers many times, your bills will be heading much higher over the next 10 years – protect yourself accordingly!