Why These Bankruptcies Matter

California cities starting what seems to be a string of bankruptcies.  I think these are important because I've always said that the final act of the Great Recession would be the right sizing of all forms of government {although I fail to see how that is going to happen to the Feds in Washington as their seems to be nothing to stop them from simply printing money until the presses fail}.  Here's a post from Zero Hedge that speaks my mind in much better form than I can do.

"Meredith Whitney made her doomsday prediction. Then nothing. Nothing. Then lots of glib muni expert pundits gloating because the Fed, the ECB, the BOJ, the BOE, the SNB, and of course, the central bank of Kenya, had managed to delay the inevitable by a year. Then some more nothing. Then suddenly Stockton, Mammoth Lakes, and now San Bernardino all file in the span of 2 weeks.

• SAN BERNARDINO, CALIFORNIA, WEIGHING CHAPTER 9 BANKRUPTCY - BBG
• SAN BERNARDINO COUNCIL TO DISCUSS ACTION, SPOKESWOMAN SAYS - BBG
• SAN BERNARDINO SPOKESWOMAN GWENDOLYN WATERS SPOKE IN INTERVIEW - BBG

There is a reason marginal events are oh so very important: because as Greece showed, and now one after another broke California municipalities are dropping like flies, one the precedent is there, the easiest thing to do is to just hit Print on that Chapter X petition. After all everyone else is doing it, and remember: he who files first, files best.'''

Link:  Zero Hedge: Bankruptcy